Title: Poverty Cycle: Causes, Factors and How to Break the Cycle of Poverty
Headings: Poverty Cycle: Causes, Factors and How to Break the Cycle of Poverty
Poverty Cycle: Causes, Factors and How to Break the Cycle of Poverty
Table of Contents
Meaning of poverty cycle
Causes of the poverty cycle
Factors that maintain the cycle of poverty
How to break the poverty cycle?
#1 Educate yourself
#2 Change your mindset towards money
#3 Take the help of community resources
#4 Don’t be afraid to walk away

Content: The loss of job, unemployment or failure of a business
Unplanned pregnancy
Death of the earning member of a family
Financial mismanagement
loss of personal savings
Debt that keeps on increasing
Divorce or a break-up and one member is not equipped to handle the financial burden
Eviction or foreclosure
Criminal activities that can lead to prison and financial disaster for the rest of the family
Loss of economic assets
Factors that maintain the cycle of poverty
Once a family is poor, it becomes very difficult for it to escape the circumstances. Some things would have made a difference, but they were unable to procure for instance
Education
Transportation
Migration to an area with better economic opportunities
A better medical facility that could help in regaining health
Food
Rent
Buying in bulk
Debt
Overdue payments
Government benefits
How to break the poverty cycle? Yes, a poverty cycle is very difficult to break but not impossible. Some important steps that can help in this endeavor are as follows-
#1 Educate yourself
Here educating yourself does not mean a diploma or a degree in the educational field but being smart and knowledgeable. The truth of the matter is that people are ignorant and hence continue to repeat several mistakes that keep on dragging them down towards the cycle of poverty. Sometimes financial literacy is not a possibility when someone comes from a very poor background but what it can do is become smarter and knowledgeable about certain facts that can prove a boon to him. Gain enough knowledge about how the credit system works and your rights about loans and credit. Shop around for information so that you can get the best deal and utilize it for your benefit. Basic financial literacy will help you to break the shackles of poverty. #2 Change your mindset towards money
Experts believe that it is the mindset and behavior that will help a person to drag him out of the pit named poverty cycle.