2007-10-23 03:44:51 · 9 answers · asked by marvino 1 in Business & Finance ➔ Credit
Spending more money than you have.
2007-10-23 03:52:42 · answer #1 · answered by trer 3 · 2⤊ 0⤋
The biggest cause is people who put too much stuff on credit and don't live within their means. We're a society of instant gratification, so people will put stuff they want but don't really need on credit so they can have it NOW, instead of deciding what they really want or need and then saving up for it. As a result, people who keep putting stuff on credit get to the point where all they can do is make the minimum payment on their credit cards every month and their credit cards are charged up to the limits, so they can't even take out extra money in the case of an emergency. The interest rates on credit cards is outrageous (many hover right around 20% APR), so if you put something on credit you end up spending twice what it was worth on credit card payments by the time you're finished. The tricks to staying away from bad debts are: buying only what you can afford in terms of a house, a car, and anything else you might need or want in your life; using credit cards for purchases but not for a revolving line of credit (READ: Pay your credit card bills in full every month); and learning to save your money for the things you want and paying cash for them.
2007-10-23 10:58:08 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Scientifically speaking?
Bad debts is the result of being broke.
Scientists have determined there is a direct connection between marriage and being broke.
bd=b(m)
Not bad for someone who got a D in high school science, eh?
2007-10-23 16:55:10 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Possibly because you did not do a credit check on your customers before you sold them goods?
2007-10-23 10:52:53 · answer #4 · answered by Diane M 7 · 0⤊ 0⤋
Impulse buying to keep up with everyone else not what you need.
2007-10-23 10:52:39 · answer #5 · answered by Anonymous · 0⤊ 0⤋
divorce,job loss, medical problems
2007-10-23 10:52:32 · answer #6 · answered by becca9892003 6 · 0⤊ 0⤋
Not paying your bills.
.
2007-10-23 10:52:13 · answer #7 · answered by Kacky 7 · 0⤊ 0⤋
deadbeats
2007-10-23 11:03:56 · answer #8 · answered by Anonymous · 0⤊ 0⤋
people not repaying what they owe?
2007-10-23 10:52:33 · answer #9 · answered by jimi 5 · 0⤊ 0⤋