Reasons People Stay in Debt – Why You Can’t Escape Easily?

Reasons People Stay in Debt

This article it is tried to explore 10 Reasons People Stay in Debt even people have to pay extra money apart from the debt and more.


Debt can be anything but most of the time money borrowed by one party from another party. This is the agreement that gives the borrowing party permission to borrow money and has to be paid back with interest. Interest is that extra amount of money that the borrowing party has to pay along with the actual amount of money as he is borrowing the money. Now the question is if people have to pay extra money apart from the debt they borrowed then why they want to stay in debt? And don’t want to be debt-free. This article it is tried to explore ten reasons of people stay in debt.

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1. They don’t want to make sacrifices.

People often make sacrifices of their daily needs for a better future, like skipping a one-time meal, cut off cable connections, leave transportation and just walk and also sacrifice their sleep for two or three jobs. But not all people are like that. They can’t just sacrifice few things from their lives only for short period for the bright future. So to make their daily living they borrowed debt and remain in debt for their present living and don’t think about securing the future by sacrificing their present. So this is the main reason of stay in debt.

2. They want to keep up appearances.

Another reason for staying in debt is that some people have a mindset of “keeping up with the Joneses”. The Joneses have a leased BMW and a mortgage so it looks like they have it all together on the outsidebut things were not like that by using all things on debt they become bankrupt. Most people try to keep up with their every move. So they also borrow debt to keep up their appearances. This is not a wise decision but they are not thinking about their future they just want to focus on their appearance and lavish living.

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3. They’re addicted to the stuff.

The third reason is that people stay in debt because they love material things. To feel more confident and sometimes to show off their things they get more and more things so they can’t become debt-free and it’s all fake as they are accumulating the stuff they can’t afford and event they don’t need it.

A time comes when their addiction to debt is going to catch up with them and their downfall started. This is something set tradition in our society that if one can afford the minimum payment, then he should buy it, this sounds ridiculous but people are stuck to it and ultimately they are under the burden of debt for years. So instead of simple living people are busy collecting unnecessary stuff.

4. They become hopeless.

If someone is under piles of debt for years and can’t find a way out he may become depressed and hopeless. This is the psychological effect that he can’t find any light in the tunnel and stay in debt because they are afraid to make a single move at all. They are comfortable remaining in debt instead of becoming debt-free. Their life becomes as it is going on, they are using credit cards, using cars, and other luxuries and don’t think to take rid of debt but they go on as they are living. They need motivation that they can pay their huge debt so can live a debt-free living.

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5. Getting out of debt is not a priority.

This type of person appears to be lazy, no doubt they have good intentions, but they delay making the proper plan, and each month passes and they failed to make the budget. This is not fun so just by unintentionally avoiding the payment of debt they can become bankrupt. They can’t find any way out and stay in debt for years. This is a very careless mistake that is one of the main reasons that why some people stay in debt. When you are borrowing a debt you need to be very punctual and vigilant.

6. They don’t know why they handle money the way they do.

Some people just don’t know why they handle their money in that way. To be good in spending people should make changes in spending their money for good. They can change their behavior and mindset for their selves not for others as this will be good for them, their life will be easier. So if you don’t know exactly the way of your spending you can’t be debt-free.

7. They’ve bought into the lies.

Some people are living just fake life. They are liars with themselves and with the world. They are running out of money and have a mountain of debt to pay but they simply avoid it. This is very irresponsible behavior that causes them to stay in debt. They should become strong enough to face the situations and accept their life as it is. Making one life good is not a bad thing but all that glitter is not gold so stop lying and go on with the truth.

8. Their spouse isn’t on the same page.

Some people can’t handle money and relationships at the same time; the reason is that they can’t make the same plan. One of them might be wanted to become debt-free and the other isn’t quite convinced and maybe careless. Spouses have to be on the same page to become debt-free. They have to make plans together for the payment of debt. So people are struggling with their relationships and debt at the same time they can’t be on the same line in that matter so remain in debt for a long period.

READ ALSO: How to Take Control of Your Finances in a Recession?

9. They think they don’t make enough money.

Some people are very careless in spending their money; they spend more money than their income that causes them to stay in debt. It doesn’t mean that their income is low; they are having good income but lack proper management so they spend more than they need. That is the important reason to budget. Sometimes it happens that you don’t have enough money so in this case you have to take steps to increase it by getting a part-time job, hard work for promotion or you can also lessen you unnecessary expenses for the better.

10. They don’t make a budget

Only a few people budget regularly and if you don’t have a monthly budget it simply means that you have no plan for your money. Every person should have a plan of spending his money by knowing his income and expenses. Once you are borrowing a debt you have to be money smart, should have details of your expenditures. So this is also the reason people staying in debt that they don’t make a budget and don’t have any idea that after how much time they become debt free so they remain in debt.


As many reasons for staying in debt are discussed above. No one wants to remain in debt but sometimes reasons are due to your negligence and sometimes they are just circumstantial you can’t control them. But the thing is you should have plans and arrangements for your upcoming days and especially your income. By knowing the reasons of stay in debt people can make arrangements beforehand to avoid them as they can.

Once the debt is borrowed it keeps people stuck in a cycle that often makes it impossible to build wealth. No doubt it drives your goals into the far-off bright future. After taking the debt people make their life better but they can’t find any way out of debt and remain in that cycle for years. They must search for ways out as they are the only ones who can help them.

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