There are many reasons people fall into debt. Debt can put a serious strain on an individual’s life and relationships. Debt makes the simplest things in life seem impossible or unattainable. The biggest problem with debt is that many people choose to turn a blind eye until it is too late. Debt simply will not go away on its own. Leaving debt until the last minute will result in bad credit, unpaid bills, unhappy creditors, and possibly bankruptcy. If you want to avoid these factors, you should seek debt advice immediately. You may be at a stage in your debt where you can fix it with the help of debt advice. Or, you may need debt advice to help you with a type of debt management plan. Either way, you need to come clean about your debt and get help.
So how do people find themselves getting deeper into debt? There are actually a few common life experiences that can get an average person into debt. If you find yourself unexpectedly facing huge amounts of debt, seek debt advice before the problem gets worse. Here we list some of the most common circumstances that can result in unexpected debt:
Loss of income due to redundancy
One of the most common reasons for falling into debt is loss of income. Many people take out personal loans, vehicle finance, home loans and credit cards when they have a full-time job. But what many don’t foresee is the possibility of losing that secure job and having no financial leg to stand on. If you are let go from your employment, it is easy to fall into debt. If this should happen to you, contact your creditors and alert them on your current financial circumstances. They will sit down with you and work out some sort of agreement to help you until you become employed once again.
An addition to the family
Most families have two incomes that can support their current style of living. But many are not aware of the cost involved in expanding the family. Planning for a new baby adds alot of additional expenses to your budget, especially if the mother has to stop working in order to take care of the baby. Plus, maternity leave benefits are only a portion of your regular salary. If you are planning on extending your family, carefully sit down with your partner and work out your finances. Welcoming a baby into the world is supposed to be a joyous occasion, not one plagued with stress over debt.
Divorce or separation
Unfortunately, marriages can end, some on an ugly note. This brings forth the issue of finances and couples arguing over who gets what. An ugly divorce or separation can leave one with unexpected debt. If this should happen to you, sit down with an expert and get debt advice.
Ill health
Ill health is something that can affect anyone, anytime, so you need to be financially prepared for it. However, health insurance can be expensive, so paying hospital bills cash is what many people opt for. However, hospital fees are exorbitant, and many people do not have this extra money safely tucked away. Also, ill health can cause you to miss work often, leading to a lower salary for missed days. In a case of ill health, contact your creditors and discuss your problem with them. Creditors can be quite sympathetic, and they will more than likely work out a system of payment that benefits both parties.