WHY DO INDIVIDUALS FALL IN DEBT
This I believe is not a new topic for many of us. There are a whole lot of people in debt today and all what they are thinking is how to get of this excess debt. The truth of the matter is I wonder people around me and ask why do people fall in debt.
It has been a question that has been bothering me for a long period of time. I believe nobody actually want to live in debt. So this has keep me wondering. Those people that was said to have fallen in debt, I quite believe it was not their aim or desire to fall in debt, then what now goes wrong that they were not able to control their financial state to the point at which some even bankrupt.
There has been some reasons flowing through my mind which I have been able to figure out some out of this which are this below
(1). Over-Spending
It will shock us that this has been the first and most popular reason why a whole lot of people fall in debt. Now the aspect of debt I am talking about, is not linked to companies but we individuals and I have come to notice with my few interaction with people that those who fall in debt are those who can't control the rate at which they spend.
They do engaged in excessive spending. To some they are able to control the rate they spend while to some it becomes quite difficult for them to control the rate they spend and people who can't control the way they spend will end up in debt
(2). Not knowing the difference between wants and needs
Some people actually did not know the difference between wants and needs and this has implicated a lot of people to spend unnecessary
When you don't know the difference between wants and needs, you will not be able to caution and discipline your financial budget and so you will wan to buy everything irrespective of whether it is a want or it is a need. Quite disheartening at times to realise
(3). Unexpected Emergency Needs
Now this can't be let out. Not everyone like I have said earlier want to end up in debt, some it is because of some unexpected Emergency financial needs that pop up which they need to attend to and what shock them is those emergency needs took all their money and make them end up in debt
A lot more reasons ranging from different perspectives which I believe the society start need to paying attention to. The rate at which people are falling in debt and been bankrupt thereby reducing the standard of their living is alarming and is something our society need to take up with urgent attention to it
I will be looking forward to listen to more of your contribution in the comments section below. Why do you think people fall in debt?
Sometimes debt is inevitable; you really see it happen but somehow you can't just stop it. Having a high income doesn't really shield you from debt, I wrote a piece on this sometime ago.
Yes. I think I will check your post out.
I have also come to realise having high source of income does not shield you away from debt