29 Sep Consumer Counseling Service Exposes Banking Industry: Finds Top Causes of Debt
In an article placed online with Bankrate.com, Steve Bucci of the Consumer Credit Counseling Service of Southern New England lists his Top Ten Causes of Debt. Conspicuously absent is fraud, abuse, intent and extravagance.
Bucci’s list does not include scammers, tricksters, credit card abusers. No, Bucci finds debt accrues from ordinary life experiences, hardly reasons justifying so called bankruptcy reform designed to make it harder to file bankruptcy.
Bucci says hundreds of readers at Bankrate.com requested his advice on how to avoid debt problems so Bucci drew on data compiled from his Bankrate.com readers and former clients at the Counseling Service. From that data, Bucci found his unofficial top ten reasons people incur debt.
At the top of the list is reduced income while expenses remain the same. This category relates to a job loss or reduction in hours worked.
Next on Bucci’s list is divorce. Divorce is the mirror image of reduced income/same expenses. With divorce, income stays the same but expenses increase as two now live under two roofs instead of one.
Bucci adds poor money management, underemployment, gambling addiction [Bucci says a casino is the only place you can legally mortgage your house while intoxicated], medical bills, saving too little, lack of communication skills, counting on money before it arrives and financial illiteracy.
Andy Miofsky, Esq.
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