Top Causes of Debt in the US

Keeping Your Head Above Water In the US, including Florida, there are millions of people who are suffering from the burden of debt. From dealing with creditors calling constantly to the stress that comes from dealing with your debt, this is not a situation that you likely want to be in. Most of the time, debt is not the fault of the person dealing with it. However, understanding and knowing why you are in debt can be beneficial, as you will be able to figure out how to easier get out of your debt.

1. Reduced Income, Same Expenses

You may be happily getting along, being able to pay all of your bills for awhile, then disaster strikes. Your hours get cut at work, you lose your job, your company closes…any number of things can lead to a reduced income. Just because your income has fallen, doesn’t mean your expenses do, and this is one of the leading causes of debt.

2. Divorce

Another very common reason that people end up in debt is due to divorce. Statistically, you have about a 50% chance of facing a divorce so odds are fairly good, no matter how good your finances may be now, that if you get divorced in the coming months or years, that you will face some financial difficulties.

3. Poor Management of Money

People will also find that they get caught in debt thanks to poor money management. How does poor money management happen? Because people spend more than they have. If you find yourself spending more than you are bringing in, you could be facing big debt in the future.

4. Medical Expenses

Finally, you will find that you may have medical expenses that you were not expecting…and these can certainly cause you to go into debt. In fact, medical expenses are the number one cause of bankruptcy in the US.

If you have found yourself in debt, there is a way that you can get out of debt…as long as you own your vehicle. At Embassy Loans, you can get a car title loan using your car or truck as collateral. You don’t need income or credit, just a car with a clean title. Contact them today for more information on car title loans and to see if you are eligible.