Top Causes of Debt

By now, you've no doubt hear the saying, "Those who do not learn from history are doomed to repeat it." It's one of those old cliché's that actually still holds true today. If you don't learn what put in debt in the first place, it's bound to happen again. Learn about some of the top causes of debt now so you can avoid them later:

• Medical Expenses - Medical expenses have the tendency to pop up when you're least expecting them. Unfortunately, they are all but unavoidable and often very expensive. These can be even more costly if you do not have health insurance.
• Credit Cards - Very few people have the will-power to successfully use credit cards without piling up debt. With their high interest rates and numerous fees, credit cards cause more debt than just about any other expense.
• Money Management - Think you don't really need a budget to keep track of your finances? Not paying careful attention to your finances can be a grave mistake. At the Debt Management Credit Counseling Corp, we can help you find the best money management program for your situation.
• Loss of Job - For thousands of people that have lost their jobs, debt is an unavoidable circumstance. Even if you're able to find a new job, it is almost always at a lower income, which could easily put you in debt. With the US economy struggling, you can expect the unemployment rate to continue to increase.
• No Savings - As you can probably tell, many of the top causes of debt are related to unexpected expenses. The only way to prepare for these expenses is with a sizable savings account. By savings a small portion of each paycheck you receive, you'll be able to better handle the unexpected.
• Education - Did you have to take out student loans to attend college? Like many graduates, chances are you still haven't managed to pay them off and now they're collecting interest. While investing in an education is generally a good idea, it can still be the primary cause of debt.
• Pregnancy - Pregnancy, especially an unexpected one, can cause major changes in your life and your finances. Between the costs of having a child and taking maternity leave from work, a pregnancy can easily put a family in debt.
• Gambling - One of the easiest ways to find yourself in debt is by gambling your money. Whether it's from the blackjack table or sports betting, the odds you'll get from gambling are always in favor of debt.

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