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Five reasons you get pulled into debt


All of us know that debt can lead us to very disastrous effects in life.

And yet, most of us are stuck in the pit of debt and credit card bills, asking ourselves, ‘why am I even in debt?’ and ‘how the hell do I get out of here?’

We’ve scrutinized the major causes of debt and thus we have shortlisted five of the major reasons that young Indians fall into the rut of debt.

1.       LACK OF A BUDGET

Most of the time, poor budgeting invokes debt. You must have a monthly budget. Without a proper budget, you will not be able to track your expenses. And if your expenses exceed your income, you will be pulled down to debt.

2.       INCOME ISSUES

If you are currently going through a rough patch in your career or if you are unemployed and are looking for a job – the period might be low. But the effect that it has on your finances in the long run, is huge. It can have a lasting effect, because you’ll be wanting to make ends meet and will thus be forced into taking up credits or loans.

3.       DEATH AND DISABILITY

A shockingly large number of Indians, are living without an insurance cover – and thus at the occurrence of an unfortunate event, they stumble into a severe state of financial crises. It is very important to get a life cover, especially if you have loved ones depending in you. 

4.       OTHER MEDICAL EXPENSES

Every single step you take inside a hospital is going to cost you money. Not having a proper health insurance will only make you slip into debt a lot easier. And when you don’t have the money to pay for your emergency bills, it will look easier to swipe and put the money on your card or take out a loan – but there begins your tread down the debt road. 

5.       LACK OF SAVINGS

If you want to avoid unwanted debt, try to be prepared for unexpected expenditures by saving some money. Being prepared for those rainy days, is a sure way to help you stay out of debt.

The whole point of leading a life with savings and lots of financial planning is to be self-sustained, after all.

READ ALSO:  Pitfalls of Financial Goals

READ ALSO:  Dealing with your debt

Written By: BALAKARTHIGA.M



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