The Cycle of Debt: Part 1 – What is it?

Debt cycle

Do you or someone you know struggle with personal debt and have a hard time getting out?

There seems to be a cycle that forms with personal debt and it can become overwhelming. This financial crisis might have started when the loss of a job or another emergency led you to get a payday loan or borrow money from a family member. Once you get thrown into the cycle of debt, it can be very difficult to get out, but what is this cycle of debt and what makes it so difficult to leave?

It begins with a need for financial assistance. Maybe the bills are piling up or an unexpected event has happened where you need aid to cover those bills. Next comes the help. If you have turned to a payday loan for help, the cycle may seem to never end. The payday loan APR average in Utah last year was 466%* Many people end up having to use these loans as a crutch and will roll one loan into the next, only to accrue more interest in the long run. The big picture might be unclear when getting into this debt cycle. The focus seems to only be on the small payment amount rather than that the extra money that will be paid over the long run.

Attempting to get out of this cycle on your own can be complicated and stressful. There are options! Stay tuned for tips on ways to avoid this cycle as well as how to get out if you are currently stuck in debt.

If you can’t wait for part 2 & 3 of The Cycle of Bad Debt, check out another blog post of ours at


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