Specialists claim that good income doesn't always guarantee that a person can live without constantly being in debt.
Sometimes people face unexpected expenses that cause them to sink into debt for years, and sometimes it happens gradually, without external causes.
Let's find out more about that.
Unstable income or low wages
Individuals with irregular income or low wages may find it challenging to meet their financial obligations, leading to the accumulation of debt.
Fluctuating income can make it difficult to budget effectively or plan for future expenses, resulting in a reliance on credit to cover basic living costs.
Poor financial management skills
Some individuals may struggle with budgeting, tracking expenses, and making informed financial decisions.
Overspending and lifestyle inflation
As income increases, some individuals may also fall into the trap of lifestyle inflation, where they spend more as their earnings rise, leaving them with little to no savings and often relying on credit to sustain their lifestyle.
Medical expenses or emergencies
Medical bills, treatments, or emergencies can quickly accumulate, forcing individuals to rely on credit cards or loans to manage the expenses.
Emotional spending or coping mechanisms
Retail therapy or impulsive buying habits can lead to excessive debt, as individuals rely on shopping to fulfill emotional needs without considering the long-term financial consequences.
