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?’
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
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
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.
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Written By: BALAKARTHIGA.M