There are so many reasons why more people stay in debt. But most of the reasons as always considered to be the mindset of people and the love of fashion.
Reasons Why More People Struggle to Get Out of Debt?
Lack of awareness on what we need, and to what extent we need is the first reason.
Peer Pressure: getting influenced by others is a very bad habit in people nowadays. Imitating the people who maintain branded items and to show up false status in society causes more debt.
Anxiety about buying things in the festival offers. Lending money from others and buying gold in believing the traditions like Akshaya Tritiya.
People never use 70% of their wardrobe but still get clothes whenever there are new models in the market. Especially girls never wear their clothes, all designer clothes and sarees are always packed in their cupboards.
Believing the marketing things of Banks and applying for credit cards for Zero Percent Interest, from there get luxury things like washing machines, Mobiles, refrigerators, gold, etc. on EMIs even though there is no such use for all those things.
The Irony is that people even drink phenyl if it comes for free, so people never understand the conspiracy behind the issue of credit cards from banks.
Getting influenced by favorite actors and buying things that they advertise without any necessity. Doing grand marriages for the name and frame in public. Nowadays Farmers from small villages are also offering dowry more than their income just because of this pride.
Many Companies link up with Banks and introduce offers. People will buy those things without any awareness about the inferior products they sell by introducing offers. We are supporting consumerism by doing such things.
Following the lifestyles of others, like our relatives, friends, and neighbors, we put ourselves into debt. This leads to bad phases of life. Thus we need to come out of debt.
Last but not least, a person should always remember that happiness is always within us, it doesn’t come from any luxury things.
People struggle to get out of debt for several reasons:
Poor Financial Literacy: Many people struggle to manage their financial circumstances because they don’t have a firm grasp of interest rates, budgeting, and efficient debt management techniques.
Unexpected Expenses: Even the best-laid debt repayment strategies can be swiftly derailed by unforeseen financial obstacles that life may present, such as auto repairs or medical emergencies.
High-Interest Rates: High-interest rates are a common feature of credit cards and some loans, which can make it difficult for borrowers to settle the principal amount and create a debt cycle.
Emotional Spending: A lot of people turn to shopping or spending as a way to deal with stress or emotional problems, which can make their debt problems worse.
Income Instability: It may be difficult to make regular debt payments if there are fluctuations in income brought on by job loss, underemployment, or irregular labor.
Consumer Culture: People who are under social pressure to maintain a particular lifestyle may end up taking on more debt to purchase items and experiences that they may not be able to afford.
Absence of a Clear Plan: People may become overwhelmed and unsure of where to begin when they lack a clear plan for paying off debt, which could cause them to do nothing.
Long-Term behaviors: It may be difficult to adopt new, improved financial habits because of deeply rooted saving and spending habits.
Some Facts to Remember Always:
When there is no right one to travel with us, there is no use even if you have a car valued at 5 Crore.
There is no use in bed when you can’t even sleep properly.
There is no use for your expensive Rolex watch when you have no friends to spend their time with you.
Conclusion
A more secure and stress-free living can result from successfully resolving outstanding commitments, which is a milestone on the path to financial independence. A person may feel relieved and empowered once they are debt-free because they are no longer accountable to their creditors. Opportunities for accumulating wealth and pursuing long-term goals are made possible by this greater financial security. Being out of debt eventually leads to a more satisfying existence.
Nice post.