Escaping Debt

Henry Githinji

Henry Githinji

Henry plans to be an entrepreneur with his own financial consultancy firm, specializing in in binary options and stock trading. Henry is a day trader and plans to use the capital he makes to launch his business. He plans to build a portfolio that attracts investors through his trading performance.
Henry Githinji

Major causes of debt

Americans are no strangers to debt. Figures show that the majority of us do not pay off our credit card balance in full each month, while a third of us have at least ten different credit cards. Let’s take a look at some of the major reasons why Americans get into debt:

1. Loss of income

Expenses are a fact of life. Everyone has regular payments that they have to make, including mortgage/rent payments, utility bills, phone bills etc.etc. Unfortunately, if our income falls or we lose our job, these expenses stay the same. It’s little wonder that this is one of the key reasons for people slipping into debt.

2. Divorce

Consolidate debts

Consolidate debts

Half of the marriages end in divorce. In addition to the emotional fallout from this type of major life event, there are usually financial ramifications, and these can be quite severe. Many marriages involve joint bank accounts and mortgages. And if a couple has children, the financial after-effects of divorce can be sizable, even if the split itself is amicable and doesn’t incur massive lawyer’s fees.

3. Poor financial management

Some people are simply not good at managing their finances. If a person fails to keep track of their monthly income and outgoings, it’s remarkably easy to fall into debt. And once this has happened, it can be a long hard road back to financial security. A couple of hours spent keeping tabs on your finances each month can prevent years of heartache down the line.

4. Underemployment

There are different types of underemployment. A person may only be working part-time when they would ideally want to be in full-time employment. Or they may be doing a job that doesn’t make full use of their skills because they are unable to secure their ideal job. While America’s jobs market is slowly improving, many people are still underemployed and are therefore not meeting their full earning potential. This means that they may not be earning enough to cover their usual monthly bills and fall further and further into debt each month.

5. Medical bills

Debt Help

Debt help

Medical bills can be very costly, even if you have medical insurance. Research shows that emergency medical expenses are one of the main reasons for bankruptcy applications in the USA.


Debt can be caused by any number of things, causing misery, anxiety and a sense of desperation. If your debts are starting to overwhelm you and you can’t navigate your way out of payday loan debt, it may be time to seek credit counseling, a debt settlement arrangement or bankruptcy. You should think about contacting a professional who can give you unbiased advice on how to improve your financial situation.

If you have too many loans and need help you can apply for our payday loan consolidation.

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