Debt is an issue facing many people, and people find themselves in debt for many different reasons.  Whilst sometimes it is unavoidable it is important to be aware of the causes of debt so that you can learn to avoid these issues and keep yourself on a more secure financial footing.

Too many people live beyond their means.  They buy cars they can't afford, take trips the don't have the money for and just expect to pay it back at some point in the future.  But by doing so they trap themselves into trying to pay off debts they don't have the money for.  The more they try to live up to the life they want, rather than the one they can afford, the more debt they struggle under.

So it is important to know what you can, and can't, afford, and plan your budget carefully.  Live within your means, not beyond them.

Once you are in debt it is hard to get out of.  If you are having trouble meeting the monthly payments then you may end up taking out another loan to cover the first one, putting yourself deeper into the red.  With interest rates meaning that the total borrowed could keep growing already being in debt can really push you further and further into it.

One that is hard to legislate for, but emergencies can often knock people into debt.  Whether its paying the plumber, electrician, or needing money to visit ill family members etc, any sort of emergency can effect your bank balance, and need for debt cash, because of it being outside of your normal budget.

We've all made mistakes budgeting before I'm sure.  But if you have done so and find yourself lacking the money for essential bills then it can really push you further into debt.  You have to make sure that you check and double check your budget before being happy with it.

Another one that is hard to prepare for but job losses are always going to have an effect on your finances and may well end up putting you into debt whilst you are paying bills looking for a new job.  Whilst you are unlikely to be able to cover for this issue entirely it is important that you are always developing contacts when you are in a job so that you can tap them up for help should the worst happen.

You should also be looking at developing alternative revenue streams from contracting your work out, setting up side businesses or working on different projects.

They are the 5 major reasons people get into debt.  Whilst they can be hard to plan for having savings in the bank, and setting up different streams if income, can really help you avoid getting yourself into debt.