The average American household that owns at least one credit card has roughly $15,000 in credit card debt. That does not include student loan debt or any other form of debt. You may not be in debt but you most likely know someone who is. How does it happen? Why do so many people live in a world of debt? There are several reasons.

• Too much house.

Too many people want the big house with the big yard and garage. There is nothing wrong with wanting it, but the price tag is often too high for the paycheck. Many homeowners end up spending way too much of their income on a house payment. That, of course, affects paying other bills.

• Dream cars.

You want to impress your friends, co-workers, and anyone who will look at you driving your $75,000 automobile. Sure, it’s only $400 per month, but you can’t afford it. Buy a nice car that fits into the budget. Better yet, save for a car and pay cash.

• Gadgets, gadgets, and more gadgets.

You have to have the latest smartphone, tablet, or electronic device that is demand. The problem is that you can’t afford it. Plus, the device you buy this month will be obsolete in six months. Only buy gadgets when you can afford them.

This does not refer to renting an apartment or a house but to renting items like TVs and furniture. If you cannot afford to buy a TV, you probably shouldn’t have one. Save your money over a period of months and buy a TV that you can afford and call your own.

• Co-signing loans.

Hundreds of unsuspecting friends and family members co-sign for loans thinking they are helping someone and doing their good deed. Many times, those loans end up going into default and the co-signer is left with a load of debt and friends and family they no longer consider friends or family.

• Credit cards.

As mentioned, American households that have credit cards abuse them. Too many people use a credit card to pay for items that they cannot afford. If you don’t have the money to pay your credit card bill when it comes, then don’t make the purchase using a credit card.

If you are showered in debt and happen to own a car, consider using a car title loan from Embassy Loans of Florida to consolidate as much of that debt as possible. An auto title loan is a short-term loan that does not require good credit and is very quick to process.