Why people get into debt – Card debt damagesUncategorized
Why do people get into debt? Have you ever been in debt? Do you know what are the reasons why people are in debt? Do you know what are the reasons why people remain in debt? Do you remember the feeling of anguish and helplessness you had for not being able to pay rent, food, a medical consultation, gasoline or anything else?
Numerous investigations state that financial crises caused by people’s debts affect mental health, triggering high levels of stress, insomnia, anguish, depression, frustration, anger, etc. We cannot deny that debts bring harm to people.
When the person’s financial crisis is prolonged, it affects physical health causing gastritis, colitis, hypertension, etc. In addition, it affects personal and family relationships that could result in separation or divorce of couples. Reasons why people are in debt, there are people who have lost their jobs or have low incomes and resort to the use of credit cards or personal loans to be able to reach the end of the month and thus cover expenses for food, medicine or services to stay or support his family.
People have no control of their money
Research carried out in Mexico in recent years by the World Bank indicates that 31% of the population never makes a personal budget to manage their money and 28% sometimes does. It is not surprising that without a personal budget, more than 42% of the population in Mexico make expenses that exceed their income.
A survey conducted by the America Line Bank indicates that only 41% of its population follows a personal budget. You should know that the only way to be able to fully manage your money is through the elaboration of a personal or family budget that helps you to know your consumption habits and to assign money intelligently to your daily spending so as not to fall short in order to month.
In my Ebook “Breaking the curse of debts ” I wrote that some people remain indebted for emotional reasons and that poverty and debts are passed down from generation to generation.
Some people experienced situations of economic scarcity or poverty at some point in their life that marked them and promised things like ” I will never let my family go through the poverty with which I have grown up ” or “I will never live in poverty again . “
Nevertheless; Many times, so that this “never” does not repeat itself, they live in debt.
Sometimes, parents take the risk of borrowing to offer our children a better education, better things, a better lifestyle. But in the long run, those debts can damage our health and even destroy the family.
I ask you, will it be worth it if our health can be damaged in order to offer material things to our family?
They want to keep up appearances
Some people are willing to live in debt to maintain a greater lifestyle than they can pay with their income.
This is the “Joneses” mentality, this concept was created in the United States and refers to when people want to have a lifestyle similar to that of their social circle based on consumerism.
To maintain the status or belong to a certain social group they must buy a bigger house, in a better neighborhood, have luxury cars, take vacations to exclusive places, wear brand-name clothes and accessories, have children in private schools, etc.
These people want to have a lifestyle like that of their friends or acquaintances without knowing that some of them live that way because they are in debt.
Escape the comparisons and do not try to live a lifestyle that you cannot pay with your income.
Have you ever felt less than any of your coworkers, family or friends for not having the same financial resources as them? Did you get into debt to feel good?
Your wife or partner is not in tune
Discussions in couples related to money management is one of the causes that lead many marriages or couples to divorce or separation.
Managing money as a couple requires commitment, transparency and communication by both parties.
One of you may want to save but your partner is spending more. Perhaps you are convinced that you should change your lifestyle, stop borrowing and start a debt-free program, but your spouse or partner does not want to do it. Fight in marriage to disagree with debts
In order to leave debts, both parties must be in tune, in the same channel and have the same vision.
It should no longer be “my” money or “your” money, it must be “our” money. It is no longer possible to be “my” debts or “your” debts, they will be “our” debts. You have to change the way you talk and if you decided to share life, that also includes finances.
Have you ever had problems or discussions with your partner about money issues? What did you do to solve them?
They are not willing to sacrifice comfort
Getting out of debt leaving some things we like is not easy.
There are people who are not willing to stop doing certain things or amenities for some time while paying debts. They are used to branded clothes, to have vacations twice a year, to eat in restaurants, to have private television, to buy the newest cell phone, etc.
If you are in debt, you must ask yourself, am I willing to change my lifestyle and temporarily give up certain things?
They don’t know how to break the rat race
Maybe the couple or one of you is in a vicious circle that you can’t break.
They wake up early, spend time in traffic to get to work, are working all day, leave work and go back to traffic, arrive home late and fall asleep until the next day to do the same.
The salary arrives, the bills are paid, the money is not enough and they must borrow to support the family. Days, weeks, years go by and there is no way out of debt because they don’t know how to do it.
Some people get used to living in debt, they believe that this is the life they had to live and that nothing they can do to change their financial situation.
So they live borrowing, using credit cards to acquire things, paying for cars and other things in small payments for many years.
I ask you, don’t you think it’s time to break “the rat race”?
They don’t know how to get out of debt
Being in debt discourages people, the money is not enough, just to make minimum payments to the cards just to realize that the debt does not decrease.
You borrow to pay a debt, but it’s like being a hole in the sand on the beach, no matter how fast you dig another wave comes in, cover the hole and you must start again. People get tired and depressed because they can’t find their way out.
They have their creditors on them, a letter has arrived from a collection office, they are already talking about the bank or a lawyer.
The bills for electricity, rent, water or schools are overdue and you don’t know what to do.
I want to tell you that there is a light at the end of the tunnel, you must take the bull by the horns and start a program to get out of debt quickly .
They have work or income problems
If your problem is income or you have no job, you should start doing other things. So get down to work, sell anything you have in your home and that can serve someone. My mother said “goods are to remedy evil.”
Something good you should know how to do, you may know how to cook, repair cars, know math or another language, start offering your services for extra income.