We all want to avoid debt as much as possible. And in order to do that we need to know the most common reasons people go into debt. That’s why we’ve compiled a list of the top 7 causes of debt.

1. A lower income, but same expenses. Often when we are faced with the same amount of expenses and a decreased income, we opt for the “buy now, pay later” option. This can lead to some serious debt. So, in order to avoid the debt trap, make sure you adjust to your new lifestyle as quickly as possible.

2. Bad money management. Without a budget of your expenses you have no idea how much you’re spending each month on things you need or want, which could lead to future debt.

3. Divorce. Unfortunately, most divorces lead to decrease income and often, more debt.

4. Gambling. Loans are available for compulsive gamblers, which can lead to horrible debt if you’re not careful.

5. Medical expenses. Increased medical costs and lapses in coverage can take medical expenses higher than you ever thought possible.

6. Little to no savings. You should always have enough savings to keep you afloat for 3 to 6 months. If you don’t and something unexpected happens, you could fall into debt.

7. Avoiding the money talk. It’s crucial that you and the other members of your family communicate about money. Talk to your kids about spending and discuss saving with your spouse.

If you are concerned about debt or need help, you can find information about debt  consolidation right here at LowestRate.com.