General Discussion
In reply to the discussion: Why Poor People Stay Poor [View all]War Horse
(931 posts)Sometimes people have no choice but to go for more expensive options. I you can't afford a freezer, you might end up using more money on food than if you had one and could bargain shop more and plan ahead more.
A bad credit rating can cripple you in a lot of ways. If you can't get a phone subscription, you might end up with a more expensive pre-pay/cash card deal. You might end up paying higher rent if you have bad credit, which can lead to fewer options on the market. Or you can lose your car if you can't pay the fees, as described here. A million things, really.
The snowball effect applies regardless. If you're in trouble, it tends to just build up and get worse. The worse the situation you're in is, the worse it usually is to reverse and (start to) get out of.