22 Jun Five more reasons we often find ourselves in Debt Hell
There are more reasons than we can count on why people find themselves in debt, but here are 5 more reasons as explained by Gail Vaz-Oxlade.
Often expenses go up, but spending doesn’t go down- This commonly happens if one of the income earners gets laid off from a job, or if your family is growing and an income is reduced during a Maternity/Paternity leave. Bottom line is if your income drops, so should some of your expenses; otherwise, it will catch up to you.
We don’t talk about money- If you’re in a committed relationship, you need to discuss finances and have similar financial goals to make it work. Each person in the relationship needs to be held accountable regardless of who makes more money!
Divorce- When you are used to sharing the household expenses on two incomes, separating will make you both, or at least one of you, feel much more strapped for cash. As Gail puts it, two people cannot run separate households as cheaply as they can run one.
Gambling- You can’t expect to come out ahead when you roll the dice on chance- the House always wins! The money would be better spent investing or put into savings.
Banking on a windfall- People that choose to do this often don’t save for retirement or put money away for emergencies. They just expect everything to fall in to place; however, this method often leads you into debt.
A common mistake people make is putting off savings until their debt is paid off! Just like other aspects of your life- everything needs to be balanced!