The main causes of debt are:
Spending more than you earn
This is simple to understand but hard to fix. Lets say you earn $1300 a month and your rent is $500 a month, bills are $300 a month and food is $200 a month. Alright, that leaves you with $300 a month, not good! Car repairs, gasoline, tax - bam there goes another $400! Now you're losing $100 each month.
Recless spending
Same scenerio as above, but lets say you earn a little more like $1500 a month and consistent outgoings are $1200 a month, leaving you $300 a month for fun. Wanna go out at the weekends - $100 gone. New lawn mower - $150 gone. New Car... $250 a month for 4 years! Can you really afford all this stuff?
Loss of job
This is a horrible situation to be in. You have costs of $1000 each month but you used to have $1500 income each month. The income is gone but the costs haven't. If I were in this situation I would cancel all TV, Internet, subscriptions etc and start looking for a job anywhere doing anything! Time is against you here.
Unavoidable costs
Lets say you or someone in your family needs an emergency operation. They HAVE to have it and you need to pay for it. The bill is $3000 and you don't have it. The bank does. Loan company's do. Welcome to debt land, population - you... and about 100 million others
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