While Americans continue to struggle with a weak economy and ever increasing amounts of debt there are companies which are seeing an upswing in business helping people get their finances back in order.  Many of these organizations are offering advice, strategies or processes which can help consumers address their high levels of debt and work toward living a debt free life.  If you are working toward eliminating the debt in your life you should know that getting out of debt is just the first step; staying debt free should be your ultimate goal.  The following list of common reasons people find themselves in debt may help you avoid getting in debt in the future.  Some things on the list are beyond your control but they should be mentioned in the event you find yourself in that situation.

• Financial Ignorance-  People who do not understand the basics of personal finance are doomed to make mistakes, in most cases costly mistakes. 

• Divorce-  With over half of all marriages ending in divorce there is no doubt this is a leading cause of debt among Americans.

• Lack of Money Management-  Almost everyone knows the importance of having a household budget to keep finances under control.  There are countless people who have no idea how much money is coming in and even less knowledge as to where all their money goes each month.  Until you get a handle on your income and expenses you will likely always find yourself short on cash or incurring debt to pay for expenses that should have been planned in your budget.

• Failure to Save Money-  When you don’t have money in a savings account you have no recourse when an emergency arises but to borrow money or charge expenses.  When you finally get out of debt, don’t repeat the cycle by spending every penny- create a budget and include your contribution to your savings account or emergency fund as one of your financial obligations (to yourself).

• Loss of Income- If you have taken all the right precautions, made all the correct choices regarding your finances and saved a percentage of you income you can still find yourself in debt if you lose your job.  It is important to create multiple streams of income to remain solvent in the event your primary source of income is disrupted.

There are dozens of other reasons why people find themselves in debt.  If you are working your way toward financial freedom you should take the time to find out how you lost control of your finances and take the steps needed to prevent it in the future (if possible).  Getting out of debt is much harder and takes far longer than getting in debt, so it makes sense to avoid going down the same path a second time.

Trisha Wagner is a freelance writer for DestroyDebt.com, a debt community featuring debt forums. Trisha writes regularly on the topics of getting out of debt and personal finance.