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3 surprising reasons you may go into debt

On Behalf of | Sep 24, 2018 | Bankruptcy |

Debt is one of those things that can creep up on you. While there are some obvious culprits that may send you into sudden debt, such as a medical emergency or unemployment, there are plenty of scenarios that can trap you into an overwhelming money problem.

Before you know it, you may be struggling to pay the bills when you do not even see it coming. Here are a few surprising causes of debt you should not overlook.

1. Getting a new job

Going into debt because of a new job sounds counterintuitive, right? Well, it is a possibility. While a new job can help you stop living from paycheck to paycheck, it can lead to more problems. You may get too comfortable with spending once you get a new source of income. When you get a new job, be careful not to boost your spending. Instead, live on a reasonable budget.

2. Purchasing a house

Of course, buying a house is a huge expense. Mortgage payments can become unmanageable and put you at risk of foreclosure. Buying a house can also make it easy to justify making expensive renovations or buying new furniture. While buying a house may feel like it gives you permission to get new furniture, appliances or electronics, be mindful of your spending.

3. Leasing a vehicle

Leasing a car may seem like a good idea at first, but it can end up being costlier than you expect. Lease contracts often contain strict provisions that can rack up fees when you turn the car back into the dealership. You may face mileage fees, disposition fees, acquisition fees or early terminations fees. Read the details of all leasing contracts and consider buying a used car instead.

Financial turmoil is not always a sudden event. It can slowly build up over a long period of time until you realize you need assistance.

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