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Publication date: August 14, 2018

5 Most Common Bankruptcy Mistakes

No one is really immune from financial problems. In fact, they are often out of control. However, there are several errors that increase the risk of bankruptcy. Here are the 5 main causes leading to personal bankruptcy.

1. Non-Payment of Cell Phone Plans

One of the most common debts among youth is the non-payment of cell phone plans and credit cards. In fact, young consumers in Quebec have a bad habit of spending more than what their budget allows. Cell phone packages generally rank first as for being the reason for many youth struggle to pay off their debts.

2. Dipping Into Your Savings for Regular Expenses

Having money aside is an advantage that very few people can afford today. Many individuals regularly withdraw a certain amount to meet their needs and find themselves in a financial impasse. So try to live within your means by paying only the essential according to what you earn and your projects.

3. Purchases on Credit

Whether it is for financing a trip or otherwise, credit must be avoided at all costs. You should save money in order to offer you what you want without living beyond your means. You guessed it, this kind of behaviour leads directly to excessive debt and that's why you should stop being tempted by unnecessary purchases. In fact, if you are already in this kind of situation, you should act without further delay.

4. Gambling Problems

Unfortunately, gambling problems is one of the main causes of debt, and this, in an important way, with gamblers. Their addiction is often caused by divorce, a loss of employment. Of course, it is not the only addiction that can lead to serious debt since drugs and excessive alcohol use are also one of the reasons why people have serious financial problems.

5. The Failure of a Personal Business

Setting up your own business is a known and undeniable financial risk. Thus, although some business projects can be a real success, many people have one day failed.