Debt—it is unavoidable in modern life. If you are a college graduate or a homeowner, chances are high that you are in debt. Even non-homeowners or those without college degrees have debt thanks to credit cards. While debt is not something average income earners can avoid in life, there’s such a thing as too much debt. If you are struggling to pay monthly expenses because of debt, or if you are teetering on the edge of bankruptcy, then you may be burdened with more debt than you should be. High-interest rates and unscrupulous financial practices can cause average consumers to be burned with debt, but there are also internal causes that you might want to take a look at. Here are several common reasons why people end up in nose-deep debt:

You Don’t Have a Household Budget

Not budgeting your income and expenditure is one of the primary reasons why people don’t pay off debt on time. Those who don’t keep track of how much money they expend each month tend to overspend. You could be spending money on entertainment or unnecessary items that could instead be used to reduce your debt. Learn to budget your household expenses starting today. Monitor your expenses for about a month. Then you will be able to figure out which are unnecessary. Cut back on impulse and frivolous spending to use the money to pay off your loans.

You Don’t Have Supplemental Income

Even frugal individuals can struggle with debt. It’s a case of simple math that if you have more income, you can pay off debt faster. Don’t bet on getting a promotion at work. It may not happen for years. In the meantime, there are several things you can do from home to increase your existing income. It’s common for average income earners to freelance from home on the weekends to earn a secondary income. You may not earn more than a couple of hundred dollars, but that’s still money you can use to pay down debt. You can start learning how to invest in stocks to earn passive income with the right strategy. Information, research, and everything you need to know is at your fingertips. Using sites like Finviz can help an amateur investor learn where to put their money. In the end, simply do your best to increase your current income and your debt could be gone in five years or even less.

You Only Pay the Monthly Minimum Requirement

Are you conveniently only paying the monthly minimum required amount on your loan bills? That may stave off collection calls, but your overall debt will not significantly decrease anytime soon. You should aim to reduce the balance on your debt to rein in the compounding interest. To do this, you will have to pay more than the minimum required by the creditor. You can gradually start reducing your debt by paying at least $50 more than the monthly minimum. Debt balloons mainly because of the attached interest rate. To beat the math on your loans, pay more than you are required each month.

You Keep Missing Due Dates

This is one thing you should never do with your loans. Here’s what happens when you miss a deadline for a monthly payment: the creditor slaps a late fee on your account and the interest will be charged for fees plus the remaining balance. You have now increased your debt by missing a deadline. Set reminders each month on when bills are due to pay it all off before the red notices arrive. Pay off your loan bills before doing your monthly grocery shopping. This way you won’t run out of money to pay the bills.

If you want to reduce your debt, avoid the above-mentioned mistakes. It’s highly recommended to have a financial plan for paying off your debt as fast as you can. The longer the loan is unpaid, the more you will have to pay in interest, therefore, avoid common missteps and strategically seek ways to reduce your debt.