10 Reasons People are in Debt

Adapted from Steve Bucci (www.bankrate.com)

With the on-going rise in Canadian debt levels and continual drop in household savings rates it becomes more and more clear that as a society we are not taking good care of our financial health. Here are the 10 main reasons people fall into a debt cycle that can quickly spin out of control.

1. Decrease in income but expenses are not decreased
2. Change in family situation – more children, divorce or death of a spouse
3. Planning/spending for a windfall that never comes
4. Poor expense control and expense management
5. No financial plan in place
6. Gambling
7. No savings for emergencies or unexpected expenses
8. Not understanding how money works
9. Uninsured medical expenses
10. Living beyond your means

It sounds like all bad news – but it is not - there are ways out of an unhealthy financial situation. And sometimes the fix is right before your eyes – you just cannot see it. If any of these reasons fit your situation – come on in or give us a call. Not only will we help you figure out where you are we’ll show you how to improve your financial health.