common causes for debt.

Melissa is a mother of 2, lives in Utah, and writes for a multitude of sites. She is currently the EIC of HarcourtHealth.com and writes about health, wellness, and business topics.

Going into debt is something that happens to most adults. Although there can be a variety of reasons, usually they tend to be results of the same common situations.

Being in debt isn’t something that you should let overwhelm your life or make you feel shame. Studies show that over 60% of Americans are in debt. Here are some of the most common causes.

Poor Money Management

Unfortunately, in high school, they don’t teach money management courses or how to handle your debt. Therefore when money problems arise, many people don’t have the skill or know-how to be able to hand it effectively without getting themselves into further problems.

Many people see their credit cards as free money that they can spend as they please, forgetting that not only do they have to pay it back, but they will have to pay it back with interest attached. Sometimes this interest starts sneaking up on them until they’ve ended up spending as much as 200% on an item had they otherwise simply paid in cash.

Instead of turning to your credit cards when you want to buy something but don’t have the funds, try to limit your spending overall rather than going further into debt. Otherwise you may find yourself so deep in debt that you can’t pay it off.

Unemployment

Sometimes you can find yourself suddenly without a job without any warning. Many people have no other choice but to put their groceries or other life necessities onto a credit card.

This can go on for months until your credit cards have gone so far into the red that they are no longer authorized to make purchases.

Student Loans

Student loans are one of the most common reasons for people in debt. With some students coming out of school with as much as hundreds of thousands of dollars to pay back, they don’t know any other way of life as an adult than being in debt.

Try to apply for as many scholarships as possible before applying for schools and consider going somewhere in-state rather than out of state to pay lower tuitions. Above all, try to make sure that you pay off your loans as soon as possible so that you can get this burden out of the way early in your career.

Buying a Home

Buying a home is something that will send you into debt for hundreds of thousands. Since buying a home is an investment that you can make a return on, it is considered a favorable form of debt. Just make sure that you opt for financing with as little interest as possible and that you make all of your payments on time.