Debt Doesn’t Creep Up on You. It Blows Up in Your Face

In my decade at Debt.com, I’ve met a lot of embarrassed clients.

They feel ashamed at how they ended up owing more than they can easily pay back. Here’s what they fear other people will conclude: “You’re a lazy spendthrift who burned through all your cash, and now you’re whining to Debt.com that you need professional help.”

Except that’s just not true.

Most of our clients kicked off their debt spiral with a problem they didn’t see coming. That’s usually…

• A costly accident
• A serious illness
• A gut-wrenching divorce
• A broken major appliance
• A natural disaster

Many times, these emergencies don’t break our clients. They’re tougher than that. But the unexpected expenses start a cycle of debt that eventually defies all their efforts to stay afloat.

Two recent studies reminded me of this…

• The auto refinancing firm Caribou polled 2,000 car owners and found “67% report at least one unexpected car-related expense in the past 12 months, and 38% say those costs added up to $500 or more.”
• The 2026 State of the Home Survey, which polled over 2,000 homeowners, found that “30% have $500 or less set aside for emergency repairs, including over 12% with nothing saved at all.”

In my experience, $500 is all it takes to start a debt spiral. Debt.com has previously reported that most Americans don’t have an emergency fund and can’t afford an emergency if it costs $500 or more. They’ll charge it to their credit cards – and the race to the debt finish line is on. 

Remember, the average credit card interest rate right now is around 20%.  That means you lose $1 for every $5 you charge. If that’s not bad enough, emergencies tend to affect your income, too.

• An accident or illness can cost you workdays, which is especially tough on freelancers and the self-employed, who the federal government says is 14% of all adults.
• A divorce increases costs for both exes, and not just in legal fees but also because they’re no longer sharing expenses.
• Even a major appliance requires time away from work these days to get it fixed or replaced.

Does this sound like anything to be embarrassed about? You can do everything right and still end up in debt. You can budget wisely and spend smartly, and an emergency can derail your best efforts.

This is why I tell clients they have nothing to be ashamed of. We tend to think of finances as just math. Numbers are predictable, so if we can’t always add ours up in the black, we blame ourselves for going in the red.

Money isn’t math. It’s susceptible to the wild ride of life. So when you seek professional debt help, that’s something to be proud of.