Going into debt is never an ideal situation, but more and more Americans find themselves in a deep financial hole that is difficult to get out of. Many things can cause debt. Here are some of the most common debt triggers in the U.S.

Debt

• Divorce

More than half of married U.S. citizens will get a divorce, and many people find themselves going through it multiple times. There are only a few things that are more expensive than a divorce, which makes it a top debt trigger. From lawyer fees to court fees to child support to supplementary income, there are dozens of fees that come your way when you want to get a divorce. Unfortunately, divorce is something that is often unavoidable. However, if you have a large amount of assets before you get married, a premium may bee a good idea in order to protect your wealth and avoid debt.

• Banking on a Windfall

It is an all too common mistake to spend tomorrow’s money today. This can be done through many ways, payday loans being one of the worst. Thinking in terms of the money you will have in the future is a horrible mistake that is one of the easiest ways to fall into debt. The future is not set in stone, and you have to be prepared for the unexpected. Don’t rely on that bonus until it is in your hands.

• Medical Expenses

Due to the immense gaps in coverage, the lapsed policies and the increasing costs of alternatives, medical expenses are a top debt trigger in America. Most doctors now take credit cards not because of convenience, but to ensure that they get paid for their service. The medical field knows that if they don’t get paid immediately, the chances of them ever getting paid drops substantially. Getting into an accident or contracting a disease without adequate health insurance is one of the easiest ways to fall into debt.

• Poor Money Management Skills

Having a monthly spending plan is one of the best ways to stay out of debt, but sadly many Americans do not have the money management skills to create one. This can be a one-way ticket to debt. Many Americans spend hundreds of unnecessary dollars ever month, which they could have avoided if they had taken the time it takes to write down their income and expenses and then reconcile the two.

This entry was posted on Saturday, August 17th, 2013 at 7:37 pm and is filed under Debt. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.