There are many situations that can lead people into debt. Some of these problems will arise regardless of how careful a person may be with their finances, whilst others will only become a factor when some form of mismanagement is present. Naturally though, certain situations are more widespread than others, so here are five common reasons why people in the UK tend to experience debt problems.
Emergencies
Emergencies are situations that we can’t control. Broken appliances, medical bills, fees from the vets or a malfunctioning car would all qualify under this category – as would many other common occurrences – and often you need some savings in place to be prepared for such expenses. If you’re short of savings, debts can soon begin to accumulate.
Credit Cards
Perhaps the undisputed primary cause of debt in modern society, credit cards allow us to spend more than we have, and so there is little wonder that temptation leads into debt. These quick-and-easy payment methods are heavily encouraged, with online shopping and attractive credit bonuses all being promoted in the public eye, so you really do have to be disciplined with your credit usage.
Divorce
Many people sadly go through a divorce at some point in their lives, and, on top of all the emotional trauma, there are few more expensive undertakings that you can put yourself through. When one party makes an especially substantial demand on the other, there is frequently a necessity to go into debt to cover the figures, so there is little wonder that debts tend to ensue.
Underemployment
Underemployment isn’t something that anyone looks at as being ‘long-term’, but many people persist in inadequate financial situations for far too long. If you really are struggling to make ends meet with your current income, you’d be advised to look into obtaining some additional work or a higher paid position, otherwise there is a high chance that you’ll end up in debt.
Poor Financial Management
Monthly budgets, saving plans and the like will all help to avoid debt, so inversely a lack of them is asking for trouble. However, there are other ways to mismanage your finances too, including trying to keep up with the flashy purchases of your neighbours or changing your car every few years, and there’s no more certain way to ‘go into the red’ than being prone to such habits.
If you find yourself facing a debt problem, then don’t despair, as Scottish Debt Help is well-versed when it comes to providing debt solutions in Scotland, and you can rely on us to help you out of even the trickiest of situations. For more information, don’t hesitate to contact us by calling 0800 011 2322 today.