4 Causes Of Debt & How To Avoid Them - Bolinske Law
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4 Causes Of Debt & How To Avoid Them

4 Causes Of Debt & How To Avoid Them

There are many things in life that cause us to be in debt. While some are unavoidable others are dealt with by simply handling them better. When you expect something to happen you can be better prepared to deal with the situation.

That’s why it’s important to always be vigilant with your finances. You have to watch and make sure nothing suspicious is going on and that you aren’t overspending in any category.

Here are 4 causes of debt and how you can do your best to avoid them.

Credit Cards

If you’re an adult with a pulse you probably receive a new credit card offer in the mail every single week. This is just the sad truth of credit card companies. They want to share their “gift” with you by offering you a line of credit you’re better off ignoring.

The best thing to do with these credit offers is to shred them. Chances are you already have enough lines of credit open in your name and opening another will only set yourself up for failure. The less credit you have the better your chance of becoming and staying debt free.

If you do have a credit card, which most of us do, make sure you’re paying it on time, not only on time but paying more than the minimum amount due. This can help you offset interest charges and get it paid off a lot sooner. The sooner you get the credit card paid off the sooner you can live a debt free life.


While loans are necessary in some situations such as buying a home or going to college, they should be avoided if possible. Taking out a loan of any kind means you plan on paying it back, with interest. It isn’t the loan the lender makes money off of it’s the interest. You might have taken out a $10,000 loan but you’ll end up paying $15,000.

The key with loans of any kind whether they are home, auto, or student loans is to pay them off as soon as possible. With student loans your payments don’t typically kick in until you’re done with school. With auto loans you’ll be paying every month.

Try adding a little extra to your payment to offset your interest and get the car paid off much sooner. This works the same with home loans as you can pay off your loan years sooner by simply adding $100 to your payment every month.


Divorce isn’t typically something anyone sees coming. It just happens. Getting a divorce can be a devastating time for you and your family. Not only do you have to deal with the emotional side of things but there’s always the financial side.

When getting a divorce the best possible way to approach it is with all emotions aside. While this is of course a lot easier said than done it will help you in the long run.

By keeping your emotions out of it you can approach the situation with a clear head and emerge from the process with the best possible outcome. This means once it’s all said and done you’ll have what you need to move forward with your life.

Divorce is not something to be taken lightly as there are more than just a few side effects. Make sure it’s what you want before you move forward and decide on how you want to handle it. Having a plan is a sure way to come out on top and get it done as quickly and painlessly as possible.

Medical Bills

Medical emergencies are just that, emergencies. Nobody sees them coming and can be difficult to plan for. This is where a savings account works wonders. When you have money set aside to handle situations like this you can focus on the care and keeping of your loved one rather than if you are going to have the funds to pay their hospital bill.

If you do emerge from the hospital with a bill make sure it becomes a priority of yours and gets paid on time, every time. You never want to let medical bills get out of hand because they can build fast. By staying on top of what you owe and when you owe it you’re more likely to get it paid on time and be able to move on from the situation.

As you can see there is a good way to handle your debts and a bad way. The best case is to avoid them all together but sometimes that may not be an option.

Figure out a plan and stick to it. If you plan to pay them on time and not neglect them you can get them paid off in no time.

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