Most Canadian consumers have some level of debt, whether that’s credit card debt, a mortgage, or other loans. Owning money to someone is fairly normal, but it can also make it easier to end up in trouble as the debt piles up. Understanding the common causes of debt can offer you insight into situations to avoid and practices to take to ensure you keep your finances in a healthy place. While there are many causes, the following are some of the most common.

Spending More Than You Make

When you live paycheck to paycheck, this can make it easy to fall into a trap of using lots of credit. When that happens, you may end up even more in debt and living beyond your means. If you are at this point or worried that you may be soon, it’s best to make some sacrifices to get your finances back in order. Making changes to your life and budgeting your money is a way to start on the path toward a life without all of the debt.

Having No Savings Available

There are many reasons to save money. The most obvious is that it can help you in an emergency. It could also be used as a down payment on a house. What you may not think about is how it can help you stay away from using credit unnecessarily when you have expenses you didn’t expect. Using credit instead can lead you down the path toward debt, which can be a challenge to handle. By saving money, you can avoid this problem.

Spending Money from the Future

Have you ever thought to yourself that you really want something, and you’d buy it on your card but pay it off as soon as you get paid? This can be a problem since you may forget about the new debt or other expenses may come up that have to be paid as well. This can put you in a situation of not having enough to pay for everything you owe. Then you end up doing the same thing the next week and it becomes a cycle that leads to more debt.

If any of these situations sound familiar to you, it may be time to come to 4 Pillars for help. You can learn more about our services by visiting