How to Accrue Debt

Many people accrue credit card debt.
Many people accrue credit card debt. (Image: Debt concept - cutting a credit card image by Sophia Winters from

Debt in the form of a mortgage, auto loan, credit card or personal loan affects more people than you may think. Dealing with debt affects your daily financial decisions and long-term financial plans. Debt often costs more than just the amount you’ve spent. Add on the interest, late fees or penalties and your simple spending becomes a financial nightmare. Accruing debt can happen quickly. There are several ways to accrue debt, and each one is fairly simple.

Things You'll Need

  • Credit card
  • Secured loan
  • Student loan

Get a credit card. Use it to spend more money than you make and never pay it off in full at the end of the billing cycle. Carry a balance so your interest charges increase and pay only the minimum amount due.

Take out payday loans or advances on your paycheck. Unless you know you can absolutely pay the loan off when it is due and keep your bank balance positive, this is a sure way to accrue debt. You’ll be charged a high percentage in interest and the total amount due on the loan is taken out of your next paycheck.

Buy a car or home using a bank loan instead of cash. You will make monthly payments for the life of the loan, along with the interest your bank charges you.

Use a high-interest-rate student loan to fund your education. While you are in school it may seem like the best way to pay for your school, but soon after you graduate you are expected to make payments on the loan, including interest.

Tips & Warnings

  • If you get in debt, try to pay more than the minimun amount due each month.
  • Do not use new credit to pay off other debt.

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