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15 Reasons Why You’re In Debt

15 Reasons Why You’re In Debt

No matter how young or old you are, you have probably had some experience with being in debt. Maybe you’ve never had it yourself, but have seen others affected by it, or maybe you have a lot of it. Some people consider some types of debt as good (such as a mortgage or student loans), and other types of debt as bad (such as credit card debt).

Whatever type of debt you have, there is probably a reason why you have it. I do believe that learning and understanding why you have debt is the first step to controlling it and, ultimately, eliminating it. If you don’t understand your reasons for having debt, then it would be very hard to stop engaging in these debt-inducing behaviors.

Below are 15 common reasons why you may have debt:

1. You are trying to keep up with the spending of others.

You might be in debt because you want the latest and greatest things, and you want to buy the things that you have seen others have. However, if everyone is spending money and going into debt to keep up with others, then it’s just a never-ending circle. An example would be keeping cable even though you know you can’t afford it.

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2. You think, “Oh, I’ll have time to pay for it later.”

You might think that you will have plenty of time to pay off your debt later, but each dollar charged now can really hurt you down the track. You should be able to afford your lifestyle now. Can you really afford that item?

3. You think, “What’s a couple more dollars charged?”

You might think that one more charge on your credit card won’t hurt you, but this isn’t the best way to view it. It all adds up!

4. You have not thought about your total pay, including taxes.

If you don’t pay taxes directly out of each paycheck, then you may be spending more than you actually have. If you don’t account for taxes, then you might be surprised at tax time each year.

5. You don’t have health insurance.

You might be in debt because of a medical issue. This is why health insurance is important. Because even if you don’t think something will happen, if it does you might not be prepared for medical costs. Treat health insurance like any other necessity (such as car insurance), and find room in your budget for it.

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6. You were never taught about credit card debt.

Many people don’t know much about — or even understand — credit card debt. Do you know what minimum payment actually means? Surprisingly, many people don’t know! Interest still accrues when you only make the minimum payment (unless you have a 0% interest rate card).

7. Your friend bought it, so why can’t you?

I have a friend who always buys the latest electronics. However, if I spent the same amount that they did, my budget would not be happy. Just because your friend can “afford” it, does not mean that you can.

8. You are overspending.

It can be as simple as that. You are spending more than you make each month, and you are charging the rest. This then leads to an increase in your debt. You need to sit down and come up with a realistic budget.

9. You have a house or a car.

Homes and cars are expensive, and there are a lot of little expenses that pop up. If you are not prepared for these expenses, then it can lead to even more debt.

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10. You go to school.

Attending school is expensive. You might have to take out student loans for it. However, try to (legally) make as much as you can in order to pay in cash each semester. It can be hard though. Try to find the best value school and earn scholarships.

11. You don’t have savings.

Without savings, life can be very hard and stressful. The smallest surprise expense can lead to debt. This is why an emergency fund is important to have.

12. You have a reduced income.

If your income is suddenly reduced, then this can really hurt your budget. This might then lead to you adding to your debt. Try to think of ways to diversify and increase your income, so that you are not as reliant on one form of income.

13. You gamble.

If you gamble, then there is major risk of getting into debt. If you cannot afford to gamble, then it is not wise to do so.

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14. You take on high-interest loans.

If you take on a loan with a high interest rate, then it will take you longer to pay it off. You might be paying more in interest each month than you are paying on the principal, which makes it very hard to get rid of high-interest debt.

15. You have a life.

Life is expensive. Things come up. Medical issues may arise in your family, maybe something with your dear pets, losing a job, and other things. Surprises like these may lead to debt.

How are you trying to become debt free? Feel free to share in the comments.

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Last Updated on August 15, 2018

30 Fun Things You Can Do This Summer Without Spending Much

30 Fun Things You Can Do This Summer Without Spending Much

Summertime can be a real strain on your wallet. The sun is out, there are people to see, places to be; it’s no wonder you might be short of funds during these sunny months. Not everything has to cost you an arm and a leg.

Take some time to go through this list of 20 cheap summer activities and make some realistic goals to complete as many as you can.

Video Summary

1. Visit a strawberry festival

Summer is prime time for tasting strawberries. More often than not, an area that grows strawberries will have a strawberry festival. Indulge yourself in strawberry pies, jams, cakes and more!

2. Have a picnic

Take your partner or your family to the local park and enjoy a relaxing picnic. Designate each person to bring one food item of their choice to add to the fun.

3. Camp in your back yard

    The summer heat can sometimes make it hard to sleep. Why not enjoy the heat outside in the yard? Pitch a tent or gaze into the night sky.

    4. Take long walks

    Discover something new where you live. Take the afternoon off from your chores and go for a long walk. You may be surprised by what you discover.

    5. Break a world record

    Breaking a world record doesn’t have to be time-consuming. You could even break one on your lunch hour. Give it a go!

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    6. Go on a bike ride

    The number of bike paths on roads in big cities has increased dramatically over the years. Take advantage, and enjoy the summer breeze.

    7. Join a gym class

      The gym is not everyone’s idea of a good time, but why not go with a friend a join a class? Spinning, yoga and step classes are always more fun with friends, and a lot of gyms allow you to pay-as-you-go.

      8. Find a new hobby

      The summer is the perfect time to find a new hobby. Serotonin (our body’s natural “happy” hormone) is produced by the sunshine and will be at a yearly high, which is great for when we want to tackle something new.

      9. Join a sports team

      Not all sports teams are competitive and require huge amounts of your time. Join in the fun with like-minded people, get fit, stay healthy and make some friends along the way.

      10. Make a slip ‘n slide

        Gather your friends, some plastic sheeting, a hose, washing up liquid if desired, and make a huge slip ‘n slide just like these guys. Granted, yours won’t be as big, but you get the idea… it’s fun!

        11. Make a treasure hunt for your kids

        Today’s digital world sees our children more often than not playing inside than outside. Why not create a sense of adventure by making a treasure hunt? Only rule? It has to be outside.

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        12. Visit a free festival

        Towns and cities are awash with free festivals, with themes from film to science. Scout your local area and discover something new.

        13. Visit the zoo

          Let’s face it: we love animals. While browsing news websites and social media networks you’re bound to come across a few pictures of cats. Take a trip to your local zoo for a better experience.

          14. Take a road trip

          Enjoy the open road with a few friends and take a road trip somewhere–anywhere. Just go out and enjoy the sunshine!

          15. Play ultimate frisbee in the park

            Frisbee is always great fun down the park, but why not turn it into more of a competitive sport by playing ultimate frisbee?

            16. Make your own ice cream

            Ice cream is a very versatile dessert. Make a sandwich, enjoy a cone, or simply just enjoy a bowl full. Better yet, making your own ice cream allows you to create any flavor you want.

            17. Invite your neighbors over for a BBQ

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              When was the last time you invited your neighbors over? Do you even know them? Now’s your chance. Just ask each person to bring a food item so costs don’t mount up for you.

              18. Get a summer job

              For many students, summer is the time for relaxation and fun. But who said earning money and being productive isn’t fun? You only get out what you put into a situation.

              19. Attend a charity event

              Attending a charity event is a great way to raise funds and awareness for a cause, meet new people, and generally have a good time. Search for your local charity event today.

              20. Visit a national park

              National parks are a great way to explore nature and learn something new. You could even volunteer and make a difference in helping restore natural habitats.

              21. Visit your local comedy club

                Local comedy clubs are extremely underrated. They are cheap to attend and no doubt you’ll have a barrel of laughs.

                22. Make your own hammock

                  Hammocks are very relaxing, are perfect for summer afternoons and are surprisingly easy to make.

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                  23. Read in your new hammock

                  Now you have your very own hammock, the only thing left to do is enjoy it. Grab your favorite book and read to your heart’s content.

                  24. Watch a movie outside

                  Movies are great. Relaxing outside in the evening is great. Put them together and you’ve got a perfect combination. In D.C, Maryland and Virginia this summer, for example, you can enjoy a huge number of movies outside.

                  25. Take a hike

                    Hikes are a great way to keep fit and see more of Mother Nature. There are countless trails available for you to explore. Why not try some this summer?

                    26. Learn how to fly a kite

                    As a child, you probably had a kite and haven’t touched it since. Why not dust it off and attempt to fly it? It’s tricky, but well worth the challenge.

                    27. Work out at the park

                    American cities are full of parks with ample space for a work out session. No doubt you’ll be happier to work out in the sun rather than a crowded gym.

                    28. Take your dog to the beach

                      One of the many joys of owning a dog is taking him or her for long walks during the summertime. This joy is enhanced when visiting the beach, for both you and your dog.

                      29. Make a summer smoothie

                      Healthy, delicious and perfect for the summer. Not only that, there are countless recipes ready for you to try.

                      30. Attend a free yoga session at the beach

                      No experience needed and all skill levels are welcome. Take yourself and a buddy down to the beach and try some yoga. You’ve got nothing to lose!

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