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Top Reasons People Get into Debt
According to Steve Bucci of Bank Rate, hundreds of people wrote in seeking advice for avoiding debt. Bucci said according to the clients at Consumer Credit Counseling Services that an increasing number of Americans consumers are struggling with underwater mortgages and credit card debt.
Top Causes for People to Acquire Debt
- Lower income/same expenses: Too often we delay bringing expenses in line with a reduction in income for a host of good reasons and let debt fill the gap.
- Poor management of finances: A monthly spending plan is essential. Without one you have no idea where your money is going. You may be spending hundreds of dollars unnecessarily each month and end up having to charge purchases on which you should have spent that money.
- Underemployment: A close cousin to No. 1, people who experience under employment may continue to think of it as only temporary or if they are coming off unemployment feel a false sense of relief. Yes, you deserve a break, but this is not the time. Get those expenses in line with your current income.
- Medical expenses. Gaps in coverage, lapsed policies and increasingly costly alternatives make this a popular category. Just about every doctor I know now takes credit cards. If you think it's for convenience, think again. The medical industry wants to get paid at the time service is rendered.
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