Top Causes of Debt and How you Could Avoid Them

If you are in debt or if you want to make sure that you spend most of your life debt-free then you can do this with ease. The main thing that you have to remember here is that there are a couple of main causes of debt, and if you do everything you can to avoid all of this then you will already be on the right track to staying debt-free.

Image source


The main cause of debt is divorce. Couples tend to argue about money and it is often the main reason behind a domestic dispute. It is very likely that either you or your partner have accrued debt before the marriage and this will carry on with you after your marriage. It does help to discuss debt before you get married but this isn’t always possible. If you don’t create a plan however, then this can lead to serious problems. On top of the debt you have, you have to worry about the divorce fees and even if you are going to have to re-buy half of your items again as well. The cost of the new furniture, the divorce cost and even the debt that is going to follow you will all add up to a serious amount of debt and this can cause a lot of financial strain.  If you find yourself in this situation then it may be worth you looking into debt help. When you get debt help you’ll find that your provider can work with you to create an actionable plan that suits your income and even your financial situation.

Image source

Job Loss and Work Difficulties

Nobody ever thinks that they are going to lose their job and usually it comes at the worst possible time. It is recommended that you have at least 6 months of living expenses put to one side when you do have a job but this is rarely possible. If you have a child, some health issues or if you don’t have as many shifts at work as you were hoping then this can cause you to get into a world of debt as well. You may find that you spend more than you earn or you may not even realize that you are spending more and this can cause you to struggle from month to month.

Image source

Bad Money Management

Not a lot of people were ever taught the rules of saving and spending. A lot of people rely on credit cards and they also struggle with the idea of spending now and paying later. If you think about it, when you go into a shop and you see something you like, you may not see the point in waiting until you can actually afford it when you have a credit card to cover the expense for you. The problem is that if you do this on a day to day basis then you will soon find yourself relying on credit cards that you can’t actually afford. If you want to stay out of debt then one way for you to do this would be for you to either invest in a 0% interest credit card or for you to really make sure that you don’t spend money on things that you can’t afford.

The Problem with Minimum Repayments

If you have a credit card then you will understand the concept of minimum payments. This is usually done in an automatic payment and this is one of the best ways for you to make sure that you are always staying on top of your debt. The problem with this is that when you only make the minimum repayment, you won’t actually be paying much off your debt. You may check your balance in a couple of months, only to find that you haven’t actually changed the amount you owe and this can cause you to be in debt for much longer than you’d like. If you want to stop all of this then the first thing that you need to do is make sure that you pay off as much as you can in the shortest time while also saving wherever possible. Not only will this help you to stop accumulating interest and charges, but it will also help you to make sure that you are not taking the full two or three years to clear your debt as well so that is something that you need to think about when the time does come for you to get started. All in all, you are in charge of your finances, and only you can make the change.

Find me on social media 🙂 :





49 thoughts

  1. My biggest downfall is money management. I’m slowly getting into the groove with putting money to the side to save. You gave great information in this article.

  2. Freedom from debt is the happiest environment. I have interviewed over 300 wealthy and successful people and the key to their long-term success is paying bills and building a reputation. They also put great store on integrity. All the examples you use are correct. The most relevant comment is where you imply ‘we are not taught to look after money’ (not verbatim). The western worlds tragedy is the lack of teaching about money and emotional management. Nice article – Thanks – Ian

  3. Agree, I also wrote an article on how to seriously save money. We have been on the fast track to savings ever since we became debt free more than 4 years ago. Small things can add up over the long run, especially if they are for wants and not needs.

  4. People substitute things they buy for a lack of inner fulfillment and/or personal perceived deficiencies, why else would you buy a $50 dollar hammer when $5.00 dollar one will do the job for ever, Needs and Wants when you are self fulfilled basic needs for all of us remain the same, wants! hell you can them or leave them they don’t move the emotional meter

  5. This is indeed a great eye opener. It tells of the simple truths of avoiding debt. I’m really thankful to you for taking the time to advise us. May GOD bless you so much. I’m truly grateful 😊🌹😊

  6. Hi Ula,

    Great practical advice. Little things can make a big difference. Have you ever heard if Dave Ramsey? He has great programs on getting debt free. Great stuff!

    Thank you,


  7. You are absolutely correct……… many of us were never taught how to manage money and just winging it hasn’t work out so well for me. Thank goodness I found Dave Ramsey and wonderful bloggers like you.

  8. A good informative blog about the problems of debt. There are among the mentioned problems that can be avoided, but there are also those that can not always be avoided, such as a divorce or if you have medical expenses (depends on how high the costs are)! There are also no more certainties in employment! What is important is the expenses you make in relation to your income or what is on your account! I have been fortunate enough never to get into debt. I was raised by my grandparents and my grandmother was a sparing person and knew how to handle money. She also taught me to never buy things on money loan. The problem with people living in a modern society is that we are spoiled for comfort and luxury. Comfort is also a form of luxury, but you have luxury and extravagant luxury. I think comfort is an affordable luxury for most people among us. It should be forbidden that banks allow us to spend more money then our credit allow us! I also think there are people who do not realize that they are paying interest on their debt balance! Thank you for bringing the debt problems to the attention and the tips to avoid them! Nice weekend… 🙂
    Kind regards, Heidi

  9. Nowadays Financial planning is a very important and framework for achieving your own life goals. thanks for sharing this info. It will be very helpful for lots of people.

Leave a comment