Credit companies and banks make it very easy for families to spend money they do not have. For instance, credit cards are commonly accepted in stores, restaurants, and many other establishments. Parents sometimes feel that they need to buy their children everything they want, regardless if the money is not in their wallets. They also live such busy lives, making it hard to cook a meal at home. Parents find it more convenient to go through a drive-thru or to dine out instead because it saves time. On the other hand, they are spending extra money they do not have. Families also like to go on vacations that they cannot afford. Charge vacation trips it all on credit cards. Meanwhile, only able to make the minimum payments on them. They probably do not consider the interest rates that these credit cards have. Another situation is when one of the parents decide to buy a car without having a down payment. Financing cars paying loans with massive interest rates. Sometimes this occurs when they see someone they know buy a brand new car, so they think that they need one too. This is known as competing with the Joneses. Many parents and children want what everyone else around them has. However, the parents may believe they can afford it, but in reality all the overspending adds up an...
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...nd started to pay off the debt. Unemployment is difficult on families, but it is especially problematic on a single parent, since they usually only have one source of income.
Families accrue large amount of debt carelessly. Accumulating debt does not happen overnight. They fall in debt by not paying attention to where their money is going due and by their disproportionate spending. Families may also have an expensive life threatening health emergency, forcing them into financial struggle. However, life happens. Parents also get laid off their jobs and it takes months to find another one, so they depend on credit cards and loans to survive with their youngsters. Parents may not recognized the dangers the situation of being in debt. Nonetheless, if they are able to recognize the process of how the get in of debt, they might be able to avoid this stressful situation.
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