The 4 Main Causes Of Debt Problems

You might think that the main cause of a debt problem is needless spending. You always hear about consumers going to the mall and going on spending sprees, only to suffer the consequences months later when they’ve racked up thousands in credit card debt. While it’s true this is one of the reasons why people get into debt, it rarely is the main reason. There is usually an underlying reason that’s much bigger. I’m going to list the top four main reasons why people get into debt – and the list may surprise you.

The point of this list is to educate you on the possible causes of serious debt problems so you can learn to avoid them. Sure, you can’t do much about a bad economy, but you can prepare for it by having a well funded savings account and little to no outstanding debt. Here now is the list of the top four causes of getting into debt.


The high cost of health care is driving many people straight into debt. Medical issues are typically unexpected and very expensive. Even with insurance the cost of doctors visits, medicine or a surgery can be more than most can handle. This isn’t to say that you should ignore your medical problems. Debt is a big deal but nothing is more important than your health. You should always spend (and borrow) money for the sake of your health.


The economy is forcing many companies to downsize. Rather than cut corporate pay, businesses are instead going to the easy route: hiring freezes, raise freezes and job cuts. This translates into regular middle class people finding themselves without a regular paycheck every two weeks. With no new income coming in people are forced to put things on their credit card and rack up the debt.

Credit Cards

There’s nothing wrong with using a credit card and then paying off the balance every month. In fact, if you have a rewards credit card this is a great idea to get free stuff. The problem occurs when you carry a debt on your card. If you end up with multiple credit cards, each with a balance, you will soon end up trying to juggle your payments to ensure you can at least make the minimum payment. But therein lies the problem, if you just pay the minimums it will take you countless years to pay off the balance.

Student Loans

The cost of going to college is increasing at an alarming rate. Due to state budget cuts we’re seeing tuition rates at record highs. This is causing many students to take out student loans. While it’s true that student loans don’t need to be paid back until you’re done with school, students are needing to borrow tens of thousands of dollars. Even with the low interest rates that student loans have, it can take many years to pay back the loan.

About The Author

Edwin is a marketer, social media influencer and head writer here at Debt Syndrome. He manages a large network of high quality finance blogs and social media accounts. You can connect with him via email here.


  1. Krys

    People can learn to work online and do freelance work, and earn that way. And people can only keep one credit card and use it only for emergencies. That right there solves a big part of the debt issue. But health costs unfortunately is a problem no one can avoid.

  2. Rachel

    I absolutely try to avoid using the credit card like the plague. I had gotten into serious debt problems a decade back and it was all due to having different credit cards that I abused. I only have one credit card and only use it if I must. And yes, I do freelance work. It does not pay big money but it is good for what I need.

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