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: Causes of the poverty cycle
There are numerous causes of the poverty cycle. Some important ones are described below-
General economic conditions play an important role in creating circumstances that lead to the poverty cycle. For instance-
Income inequality leads to the poverty cycle as it allocates wealth unevenly and the rich continues to prosper while the poor are trapped in the cycle that keeps on dragging him downwards
The high rate of unemployment puts pressure on wages and creates poverty for the unemployed
Underdeveloped countries fail to provide enough opportunities to their citizens, and they continue to exist in a poverty cycle generation after generation
Lack of poor infrastructure and economic mismanagement results in poverty cycle
Widespread corruption
Unstable market conditions
Barriers to trade like international sanctions
Sometimes certain temporary conditions can also nudge families towards poverty from where they are unable to escape even after numerous years. Some of these conditions are
Famine
Disasters like accidents in the family where the earning member dies and leaves the whole family in financial disaster
Epidemics
Natural disasters like earthquakes, drought, and storms of higher magnitude
War
Sometimes a single event or personal circumstances is enough to push a family towards the cycle of poverty which becomes impossible to escape. For instance-
Medical issues that result in ill-health and the earning member of the family is unable to make ends meet. 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.