
We are, unfortunately, a nation in debt. More than 50% of Americans carry a credit card balance with them from month to month, and 1 in every 3 Americans holds 10 or more credit cards. Where does this debt come from? Here are the top five causes of debt in America:

1. Reduced income/same expenses
Unfortunately for us, when we lose a job or our salary drops for some reason our expenses do not fluctuate. This is why the most common cause of debt is when income is reduced and expenses either stay the same or increase. In order to avoid this just make a conscious effort to be aware of any changes to your income or expenses so that the balance is not thrown off.
2. Divorce
We may have all heard the statistic that 1 in 2 marriages end in divorce, but we sometimes do not think about the financial impact that divorce can have. For marriages that involve joint accounts, mortgages, vehicles, and children divorce can truly be a complicated web of financial chaos. Some individuals find that signing pre-nuptial agreements can provide the safety net they need in case of divorce.
3. Poor money management
This may seem simple, but mismanagement of money is a leading cause of why the majority of Americans live paycheck to paycheck.An easy money management mantra to live by is do not spend more than you have.

4. Underemployment
The job market in America is slowly getting better, but it isn’t happening overnight. Because of the struggles that our economy has faced, employers are not able to pay what they should be able to. Most Americans earn less than they need to pay their monthly bills, which leads to little amounts of debt every month that eventually add up.
5. Medical expenses
With or without insurance medical bills can be extremely expensive, but we need to take care of our health. No one wants to deny their self of their family medical care, but it does come at a cost. Emergency medical expenses are one of the top causes of bankruptcy in the United States today.

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