Two Most Common Reasons Why People Get In Debt

Mortgages, car loans, student loans, and having a baby are all situations that can drive people to the overwhelming doom of debt. Debt is mostly overlooked for the simple reason that people find it normal to have certain types of debt like car and mortgage payments. Debt is sometimes very difficult to escape, especially if one does not manage money wisely. Two of the most common reasons many people get in debt is because they do not save money for unforeseen expenses, or because they tend to live beyond their means. People can fall into an enormous debt because they do not have a savings for unexpected expenses. For example one may own their own business or be employed and do well financially and because one is doing well financially, one might live their lives day by day and not save money at all. However what …show more content…
An unplanned pregnancy can lead to debt because of the necessities for the baby are pricey. A baby needs to have child care as well as proper equipment for its safety. The problem most people run into is the expenses of childcare since daycares can be very expensive. Medical expenses from having the baby are outrages as well even if you have good health insurance. However, a medical bill does not just occur by having a baby but it also occurs when one becomes ill or needs surgery. For example; Teresa that had to receive open heart surgery obtained a medical bill of 32,000 dollars. Unfortunately, Teresa did not have enough savings, causing her to fall into a financial strait. How was Teresa going to pay this off? She recognize that there was nothing she could do besides pay this bill little by little. Another unpredictable situation is the death of a family member. The death of a family member is already a tragedy one does not want to face. Not to mention the cost of a funeral can be tremendously high and stressful to deal