Why do people find it hard repaying debts??

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People find it hard repaying debts due to several factors. One such reason is High Interest Rates. For example, Credit card debt often comes with high interest rates, making it difficult to pay down the principal. Many people struggle with low or unstable income, making it hard to allocate enough money towards debt repayment. For instance, someone working a minimum wage job may barely cover living expenses, let alone debt payments. Lack of budgeting and financial planning can lead to overspending and difficulty in repaying debts. Emergencies like medical bills or car repairs can divert funds from debt repayment. For instance, an unexpected $500 car repair can force someone to use their debt repayment money, prolonging their debt burden. Last but not least. Stress and anxiety about debt can lead to avoidance behaviors, making the problem worse. For example, someone might ignore bills and reminders, causing late fees and increased interest.