Are you stuck in life due to a huge debt burden? Are you looking for debt help in Australia? Or are you planning to apply for bankruptcy? If yes, then have you wondered what got you into debt?
There are warning signs for people to let them know that they are moving towards the danger of debt and towards financial crisis. Let’s discuss a few reasons of going under piles of debt below:
Using credit card for stuff we don’t afford
People who pay for what they buy using cash are always safe as they stop spending when they are out of cash. Problem arises when we start using the option of credit card when we are out of cash. Unless you are paying your card off in full every month, you are piling up high interest rate debt for yourself.
Paying the minimum amounts
People think if they are making minimum payments towards credit card they are safe. However, it creates problems when you are paying the minimum and still using the card as minimum payments don’t have any significant impact on the balance due. Majority of the payment goes towards interest first and then lesser towards principal amount you owe.
This means you are going towards creating a problem of big debt for you and you might need debt help in Australia soon.
Poor spending habits or not saving for future
Not planning for future and not saving for unexpected emergencies is a big factor that forces you under a mountain of debt when any unforeseen situation arises needing a big expenditure.
Moreover, going crazy over discount deals, thinking that you are saving when you are buying something on sale. Where in fact, you are spending on things which aren’t much needed.
Carrying too many credit cards
Keeping and using too many cards increases your spending and you start buying things which you don’t afford using credit. You also lose the track of transactions when you are using too many credit cards. This is a major cause leading us towards the trouble of debt.
Not creating or sticking to your budget
Budget gives a road map as per your income level to keep you on track for a sound financial future. Not making a budget for yourself or not following it or reviewing it is one of the biggest reasons of people falling to the prey of debt.
Other than these, people who go for deals like buy now and pay later or interest free financing and similar deals are just postponing their debt.
Moreover, people spending too much without thinking. Sudden medical expenses for those who don’t have insurance. Furthermore, sudden unemployment or underemployment are also one of the causes of going into debt.
Whatever the reason of you going into debt is, always look for debt help in Australia for possible solutions. Or look if you are eligible to apply for bankruptcy.
