As I’m sure you know, there are tons and tons of ways to get yourself in debt out there. These things include things like mortgages, buying new cars, medical bills, shopping addictions and more. However, there exist some surprising scenarios and instances out there that can lead you into debt that you may not even expect or see coming. This article will go over three of the most surprising sources of debt out there.
1. Inheritance/Lottery Win
While you may be shocked to see an entry about winning money in an article about being in debt, let me explain. When someone gets a sudden and large influx of money (such as what would happen with a large inheritance or winning the lottery) they often mishandle this money due to the shock of it all and insufficient planning. If people spend without budgeting and planning, they often spend frivolously, which can leave them broke, only months after winning huge sums. We see this time and time again with lottery winners, which is a true testament to how important it is to plan!
2. A New Job
While getting a new and better paying job is normally a fantastic thing, it can also bring along with it some real struggles. This is because a boost of income often comes with an even bigger boost in spending. So, even though you are making more money, you are spending more too, and thus are really no better off financially at all. A great way to get a head start and really save a significant amount is to keep spending the same for a little while after your increase in income and you will be shocked at just how much more you have saved, without a drop in your previous quality of life.
3. Owning a Pet
Buying, having and caring for a pet is obviously a lot of commitment and work for individuals, but most people truly underestimate the financial cost that goes into owning a pet. Not only is it normally expensive to actually buy the pet, but food/toys and more can be a large recurring cost that some people who may not be able to afford it, don’t often consider. It can sometimes cost from a few hundred per year up to over a thousand per year depending on the type of pet and more. Also, emergency medical bills for pets are not cheap and can easily put someone into debt or force them to take out loans.