Most people have experienced debt at some point in their lives. It might have been a car repair you needed to pay off over time, or even an ‘IOU’ to a colleague when you forgot your lunch. As you get older, debt can be a burden you wish you didn’t have, and it can take a toll on your entire life. Learn more about some of the most common causes of debt below and what you can do about it.

How to Get Out of Debt

Getting into debt is generally much easier than getting out of it, but that doesn’t mean you don’t have options. You may see the value in exploring some of these debt relief opportunities below.

Use a Debt Management Service

Sometimes, having debt can be such an overwhelming experience that you need to turn to debt management and budgeting service like Just Budget. Such businesses dedicate their time to helping people create budgets, negotiate with creditors, and assist with credit card debt.

They have the connections and expertise to help you put a plan in place to tackle your high debt levels and put you in the best possible position to get back on track. Many budgeting and debt management services also offer loans, which may be helpful with individuals and businesses who might benefit from debt consolidation or fast debt clearance on high-interest loans.

Sell Assets

Selling assets is never easy to do, especially if you’ve grown attached to luxury items like boats, jet skis, and golf clubs. However, if you need to clear debt fast, selling assets can be how you free up cash and put yourself on the path to becoming debt-free.

Take On Extra Work

If your current job pays the bills but doesn’t allow you to pay off as much debt as you would like, consider taking on extra work on a part-time basis. The idea of having two jobs may seem stressful, but there are many side hustles that you can take on with complete flexibility.

For example, you might decide to take up pet sitting or house sitting or even rent out an extra room in your home. You might even be able to put your digital talents to good use in the online space with freelancing.

Earning extra income that you dedicated solely to debt may be how you get back in control of your finances quicker than you might think.

Borrow From Loved Ones

While not generally a recommended option, you may be able to borrow from friends and family to cover any pressing debts you can’t currently afford to manage yourself. If you decide to go down this route, ensure you’ve got a contract in place that outlines how much you’re borrowing when you’ll pay it back by, and whether the loan includes any interest.

Most Common Causes of Debt

Even if you’ve managed to pay off your debt using some of the methods above, it’s crucial to understand what causes you to take on extraordinary levels of debt in the first place. Awareness may mean you don’t end up back in the same position.

Low Income

When your income doesn’t match your expenditure, it can be a recipe for disaster. Your outgoings don’t match your income, and you end up with a deficit that may cause you to go into overdraft or take on credit card debt.

Even temporarily low income can be enough to increase your chances of debt, particularly if you don’t have emergency savings account to fall back on.

No Budget

Analyzing your spending habits is a core part of money management, but not everyone has budgeting skills. You may not understand the importance of setting spending limits or allocating money to specific bills each week.

Without a budget, it’s easy to spend more than you intended, fall behind on your bills, and end up in debt.

Credit Card Reliance

With a generous credit limit and desirable in-store promotions, there can be a lot of temptation to make purchases with a credit card. You might use it more than you realize, only to receive an unaffordable bill at the end of each month with high-interest rates of sometimes more than 19%.


When you have to take time off work for illness or seek medical help for an injury, you may experience extreme financial hardship. Alongside the often-high costs associated with medical care, you may also not be able to receive an income when you’re not working.

Without money coming in, you may need to rely on credit, which can be challenging to pay back even when you return to work full time.

Unexpected Bills

We’re often told to prepare for a rainy day, which you can do by putting aside money into a separate bank account each time you get paid. While this is an excellent idea, it’s not possible for all households.

Some families don’t have enough money left over after regular expenses to cover an unexpected bill, and just 39% of Americans could cover a $1,000 emergency expense. As a result, if you experience an unexpected cost like a car repair, a flight to see an ill loved one or a broken household appliance, you may end up in debt.

No Savings Account

While some people aren’t in a position to have a savings account, others simply choose not to. Not having one is a common reason why people end up in debt. Savings accounts can be helpful for a wide range of situations, including emergency bills, vacations, and expensive purchases like TVs and cars.

When you don’t have a savings account, you generally need to make purchases using a credit card or a personal loan, putting you in debt for an extended period.

A Lack of Communication

Family dynamics can be complicated, and not everyone feels comfortable discussing their money problems. Instead, some people struggle through their financial hardship, put themselves further into debt, and eventually reach a point where they need help to solve their problems.

Communication can be crucial for getting out of debt and avoiding it in the first place. If you’re ever in a position where your outgoings start being more than your income, talking to your loved ones can be a crucial consideration.

There are all kinds of debt, but some debt types are more manageable than others. There are also several reasons for getting into debt in the first place. Once you’ve identified why you’re having money troubles, you can start taking steps toward getting back in control of your finances.