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Revealed: Debt Isn’t Always Caused By Poor Financial Decisions

It’s normal to think that anyone in debt must have made bad financial decisions at some point in their life. They must have misused a credit card, spent too much money, or took out lots big loans to end up in debt.

But, this isn’t always the case, as this article will prove. Below, you have four instances where you can end up in debt without making any bad financial decisions.


Medical Expenses

Medical care is sadly extremely expensive and unaffordable for a large proportion of people out there. When problems occur, they could cause massive medical bills that cost thousands and thousands of dollars. Particularly serious issues that involve you being in a hospital for long periods, or needing an operation of some kind. Of course, there’s medical insurance available to help cover the costs of many medical treatments. However, some policies might not cover everything, and a lot of people still can’t afford insurance anyway.

So, you could end up in the hospital and create huge medical expenses that demand you dip into your savings or need a loan to cover them. As a result, it’s easy to accumulate a debt of some kind. You’ve not made any bad decisions here at all, you could be the most responsible person in the world and really care for your finances. But, you can still end up in debt because of huge medical expenses. The worst thing is, your medical expenses could come around from an unexpected event. Perhaps you had an accident in the home, or someone injured you in some way. If the latter is true, then you could be able to avoid debt. As it says here, you can claim compensation for someone else’s negligence if it causes you harm. What this means is that if someone trips you over and you hurt yourself, you can sue them and they’ll pay compensation which can cover your medical bills. Always bear this in mind if you do end up in the hospital thanks to an accident, it means you might not have to worry about debt.



Another example of when someone can fall into debt is via a mortgage. A mortgage loan is commonplace for most people buying a house. It’s no secret that houses are extremely expensive purchases. They can cost anywhere between a hundred thousand and a few million dollars. Naturally, most of the population aren’t going to have that amount of cash lying around. You can save up for a very long time and still have nowhere near the amount you need to buy a house. So, applying for a mortgage is seen as the sensible thing to do.

Like every loan, a mortgage immediately puts you in debt. You owe the lender a huge sum of money, and will probably be in debt for the next couple of decades. Have you made a poor financial decision here? No, you’ve probably made the smart financial decision in buying a house instead of renting one. It’s just the way things work, you can’t buy a house on your own, so, you need the assistance in the form of a loan. Therefore, you have to accept the debt that comes with it. However, you can reduce the effect of this debt on your life if you’re smart about how you apply for your mortgage. There are loads of tips on sites like that can help you apply for a mortgage and be in as little debt as possible.


House Problems

Another way you can fall into debt is by having problems with your home. As structures get older, they’re bound to become a little weaker and be more susceptible to problems and damages. Consequently, your house could unexpectedly have a huge problem that costs loads of money to fix. This is something you couldn’t have foreseen or planned for, and it will hit your finances hard. Imagine something along the lines of a big break in a water pipe that causes severe water damage in your home. Or, adverse weather conditions that make part of your house fall apart.

If you make good financial decisions, then it’s likely you have some emergency funds and savings to help for cases like this. However, what if the problem is so big, it requires more money? In this scenario, you dip into your bank balance too, severely depleting your funds. As a result, two things could happen. Firstly, you might not have enough money or savings to cover everything, and will need a loan. Secondly, your finances take a huge hit which means you might be able to cover the costs but won’t be able to pay for other things such as your bills. Either way, you end up in debt. There’s no real way of preventing this other than saving as much as possible to try and control the damage an unexpected house problem can cause.


Student Loans

Student loans are possibly the most common form of debt out there. Students want to go to university and study for diplomas, but this comes with a price. Tuition fees and living costs are absurdly high, which means students are entitled to apply for student loans that they don’t pay off until after they graduate.

Once again, you’ve not made a poor financial decision or any financial mistake yet end up in debt. Unless you come from a wealthy background or started saving since you were born, there’s probably no way of avoiding this debt. However, as you can see on sites like, there are ways you can pay off this debt quickly. It always makes sense to rid yourself of debt as soon as possible.

The whole purpose of this article is to show you that debt is sometimes unavoidable. No matter how careful you are with your money, debt is always possible. So, this is why it’s even more important to focus on how you can rid yourself of debt. Be prepared for debt management, and you’ll handle it better should you ever fall into it.