Steve Bucci from Bankrate.com write a list of causes of debt that intend to remind public how to avoid debt in future.

Here is the list of the Top Ten Causes of Debt:

1. Reduced Income/Same Expenses
2. Divorce
3. Poor Money Management
4. Underemployment
5. Gambling
6. Medical Expenses
7. Saving Too little or not at all
8. No money communication skill
9. Banking on a windfall
10. Financial illiteracy

PS: I would like to further explain the no 1 cause of debt, Reduced Income/Same Expenses. The first time I read the title, I was confused. After further reading, I know that it is a ratio between income and expenses. Sometimes, If our luck is really bad, our income is reduced for quite sometimes, However at that time, if we don’t maintain the ration by reducing the expenses, we will get into debt because you don’t have such amount of money to support your expenses.

For further information, you can read his article here.

Source : Yahoo! Finance

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