Being addicted to shopping, surging medical bills and a sudden lay off can be few of the most obvious reasons of racking debt but they are definitely not the only ways in which you can end up in debt. There are definitely various other ways of accumulating debt which you may be ignorant of. Such things come to you in the disguise of some huge money-saving option or like a big break for money but sooner or later, they turn into debt. Rather than pulling you out of the debt hole, they usually push you deeper in to it. If you want to stay aware of all the sources of debt, here are few hidden sources.
The brand new job that you grabbed with your potential
Don’t you think that the new job that you grabbed is meant to be a ticket out of your tough days where you have to live from one paycheck to another? The answer is supposed to be in the affirmative but don’t forget at the same time that the boost in income is usually accompanied by a boost in spending. When you snap a good job, you think you get immediate access to a huge amount of money and hence you splurge on numerous clothes and even on a new car. So, when you see your money in the account, it’s tough to say ‘No’ to the things that you want, regardless of their prices. Hence you need to rein in your expenses and keep budgeting based on the total amount which you earned previously.
Leasing a vehicle
You may think that leasing can always be a good option of getting more car for the dollars that you pay but did you know that there could be costly provisions which could make it tougher to turn in a car without having cash? It is usually seen that when people lease a vehicle, they’re too excited and interested in the car and they often forget to focus on what exactly happens when they turn the car in. So, you need to reconsider your thoughts if you’re leasing a car and you also need to read the fine print very cautiously. Be serious about the total miles you drive and make sure you add the total cost including fees, taxes and take into account other options.
Buying a new mobile phone
The cellphone company will definitely be happy to give you your shiny new mobile phone provided you sign up with them for a 2 year contract. Doesn’t the phone seem to be a freebie? But actually, you’ve signed up with them to accrue more debt in the near future. You’re actually taking out a loan from them in order to pay for the phone. You aren’t buying it for free but rather you’re financing the phone via a mobile phone contract. Make sure you reconsider the contracts and read the fine print so that you can’t be deceived.
Therefore, if you’re familiar with some of the most common sources of debt, you should also consider the few above mentioned uncommon sources of racking up debt. Stay aware of the situations as they usually come in disguise.