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10 Top Causes of Debt That Are Less Mentioned

10 Lesser Known Bad Habits of People Who Get in Debt

Written by Grace & Silas
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Debt is not something that happens on its own, it’s the result of your certain spending actions and habits.

Recognizing and changing these bad habits may not bring your already lost money back, but it’ll definitely save you money and keep you from the stress of being in debt.

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10 Top Causes of Debt That Are Less MentionedAnd if you want to reduce your debt and live your life as debt-free, you should eliminate your bad spending habits.

Sometimes you may not even realize that your financial habits lead you into debt. But once you’re aware of the actual reasons why you’re in debt, you can avoid making the same mistakes over and over again.

What follows is a list of the 10 lesser known bad habits of people who get in debt.

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1. Using Credit Cards for Rewards and Points

Credit card rewards can have benefits if used responsibly.

However, credit card companies have certain reasons to offer them, so it’s not because they do it out of the goodness of their hearts. They simply aim to encourage more spending.

2. Only Paying the Minimum Amount

You may ignore or forget your debt by paying the minimum amount every month, but your credit card doesn’t.

Postponing the discharge will only add more interest to your current debt, which means you not only stay in debt but also have to pay more than you spend.

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3. Having No Emergency Savings

Surprise expenses may occur at any time; we lose our job or our car needs to be repaired.

Yet we may not always have enough money to cover these expenses. Consequently, our number one solution is to take on debt.

The more money you save for unexpected spending, the faster you’ll keep away from excessive debt.

4. Falling for Interest-Free Loans

Don’t let the campaigns of having interest-free loans deceive you.

Make a plan of how much you can pay the debt of your loans; if you can’t make your payments on time, eventually the “interest-free” period will end and you’ll have to pay more than you planned.

5. Ignoring Your Credit History

We bet most of you don’t even look at your credit reports regularly.

In fact, you may have paid more than you needed without even noticing.

There may be some mistake in your credit account causing you to pay unnecessary expenses, so when you ask yourself how you could create such a huge debt, you can find the answer hidden in your credit history.

6. Eating Out

This may not sound like a bad habit, but in fact, eating out has a considerable effect on your budget.

If you’re a person who has to eat outside, we suggest you prepare at least one meal at home.

When you calculate the expenses of your meals, you’ll see the difference.

7. Smoking

If you’re a smoker, you should know that cigarette expenses are huge.

An average cost of one pack is $8, so if you smoke one pack per day, the monthly amount is $240.

Try to save that $8 for your bank account, it’ll be worth it.

8. Record Even Small Expenses

Benjamin Franklin once said, “Beware of little expenses; a small leak will sink a great ship.”

You may not realize the effects of small and innocent expenses, but you’ll notice them more if you record everything you spend, even if they’re small.

9. Payday Loans

Payday loans can be deceiving.

Once you start taking payday loans, you’re likely to continue because every payday your money won’t be enough and you’ll end up even more in debt.

10. Other Bad Habits

Another root cause of debt is when we recklessly spend money to entertain ourselves.

Gambling and excessive drinking can have more effects than you think—especially over time.

They encourage you to spend more and more, and eventually, you feel guilty and regretful of the result in your bank account and may try and gamble more just to try to win back what you lost.


Being in debt can really feel like slavery, which is why doing any of these bad habits on a consistent basis can be pretty dangerous for your finances.

So instead, make it a point to be cautious and clever with your money so that you’ll have much less to worry about!

And finally, now that you’re a bit more knowledgable on some of the top causes of debt, why not now learn the habits of people who always have money?

Join my EXCLUSIVE email list for money saving and making hacks!

Here I'll give you some of the best tips and hacks I have for making and saving money.

So whether you want to increase your income, get out of debt, or just some simple saving tips, I've got you covered!

Powered by ConvertKit
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Meet Silas & Grace

Silas and Grace always had a passion for travel. So in 2016, they started Chasing Foxes as an independent income source. 4 months after launch, they were making enough money from their blog to travel full-time, and in the past 5 years, they’ve been able to encourage others in their blogging journeys too. Learn more about Silas & Grace.

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