How a person can fall into debt Essay Example | Topics and Well Written Essays - 500 words

How a person can fall into debt - Essay Example A person missing on one or two payments can kick start a process of never ending debt trap where enormous amount of charges in the form of late payments, mark-ups etc are charged which never subsidize to allow a breathing space to the person availing the debt. Falling into debt is not a new phenomenon as almost everyone in civilized world is trapped into this never ending vicious cycle of debt. There are various ways through which a person can fall into debt. These means include from economic hardships to increasing social pressures to maintain certain social status within a society. b. Living beyond one’s means therefore force individuals to look for money to match their lifestyle with those they want to match. Thus forcing them to incur high cost debt and when they fail to payback, a never ending spiral of mounting debt start to increase thus almost perpetually forcing them to remain into debt. Social as well as economic pressures on individuals force them to fall into debt. This falling into debt, in current world, is mostly done through financial institutions – banks especially which offer various products catered according to individual needs at high cost which ultimately put a person into perpetual