Common Causes Of Falling Into Debt

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

If you ask anyone what their biggest financial fear is, we are certain that the majority of the answers you receive would somehow revolve around debt. While the type of debt and degree of debt may vary greatly between each individual, the theme of debt alone is likely to be present in any conversation you have with others about financial concerns. 

Now let's get to the real question - what causes someone to fall into debt in the first place? To provide our readers with an answer, we put together the following to outline three of the most common reasons people find themselves in a financial frenzy:

1. Excess Spending: Probably the most common cause of falling into debt is failing to spend wisely and using credit cards too haphazardly. Although they are easy to use and extremely convenient, credit cards can be your biggest enemy when it comes to your financial status. By swiping your life away, it's likely that you'll find yourself with more bills than you can handle relatively quickly.
2. Unexpected Spending: When unfortunate situations like natural disasters and family emergencies happen, many find themselves needing to spend money on things that they weren't expecting to. What's even more unfortunate is that most of the time, these expenses are quite costly, making it difficult to maintain a steady financial status. While most of us generally try to avoid thinking about the potential for these types of events to unfold, it's important to have some type of savings in place to prepare for the unexpected.
3. Medical Spending: Believe it or not, medical expenses are one of the largest contributors to debt and an individual's decision to file for bankruptcy. Though these expenses may not pop up often, when they do, they can be extremely difficult to manage - even when insurance is covering much of the cost.

Here at American Investment Planners LLC, we understand what a difficult experience falling into debt can be. Therefore, if avoiding debt is one of your biggest financial goals, we encourage you to meet with our team to learn more about how we can create a financial plan that incorporates various savings programs. By preparing and planning ahead of time, you can work to reduce your chances of falling victim to these pitfalls.

For more information about the services we offer, please give us a call at (516) 932-5130 or email info@americaninvestmentplanners.com.