Excessive debt is the biggest worry of most people. Financial issues are one of the leading contributors to divorce and suicide. We are provided with many opportunities to increase our debt, but getting out of debt can be especially challenging. Think about all the credit card offers and financing opportunities you’re faced with every day.
There are many things that create excessive amounts of debt, but the following 5 are among the primary culprits:
1. Unemployment. The loss of a job forces many people to rely on consumer debt for survival. Most families lack an emergency fund, and the credit cards are put into action rapidly.
2. Lack of self-control. Our society tends to be a little self-indulgent and lacking in discipline. It’s largely responsible for the high obesity rates in the United States, as well as the high levels of personal debt. How many items have you purchased in a moment of weakness that you don’t ever use or take the time to enjoy?
3. Not having a budget or financial goals. Good things rarely happen without a plan. It’s important to have a spending plan and financial goals.
4. Excessive or unwise use of credit. We all have our ways of self-soothing. Some people overeat or drink. Others find healthier ways to cope, like exercising. One of the most damaging ways to make yourself feel better is by shopping. It becomes very easy to use a credit card to temporarily improve your mood by buying something that has caught your eye.
5. Divorce. Not only can you lose half of your possessions and your net worth, you might be paying your ex-spouse for years to come. You’re also likely to be stuck with a big attorney bill.
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Increasing Financial Awareness and Building Financial Stability