I don't have any debt, never had. But I don't own a house, don't own a car and I don't have a college degree. Never took a loan or used credit. What I do have is a current job position in banking. So about this:
People spend money they don't have because either they don't have enough money to tackle whatever they are pursuing (i.e. real state, business, being able to pay for education, taxes, etc), or they don't have any other money period.
In the first case people can struggle in different degrees to meet their payments depending on a lot on stuff. Most people are able to pay what they own when they are asking for money for a single focused thing. But when we're talking about the second case, people who ask for money in order to get by, pay basic bills or are on a rough spot most people fail. Even if they get are successful in having income or in adquiring income sources like the second job mentioned, the money being lended to this people is more expensinve because the risk the institution is taking lending money to people in this circumstance is bigger. So, if it was hard for someone in this position to just pay someone, it got even harder because the lender will charge more money for each $ they lend you. They also usually have fixed penalties when you fail to meet conditions. That may sound like "if it's fixed it's fair for everyone and makes everything simpler on the consumer end wich is a new thing in finance". Wrong. If two people ask for money and one ask for $120 to pay bills and other one ask for $5000 to buy furniture and both people miss a deadline both will have to pay the same penalty, let's say $20. If both miss the first two payments the first one sees his debt increased by 33% and the second one by 0,8%. If the first person struggles so much that they have to ask for such low ammount to make ends meet seeing such increase in debt is a death blow (specially when this happens because they where broke; they had no money so now they own more money... so even though they have no momey they have even less money).
TL;DR being poor is actually more expensive because people don't think you'll actually be able to give the money back so they squeeze you so you hardly could pay anything back actually making the prediction you couldn't pay back true and therefore validating it.
If you are very very poor try to earn money. Asking for a loan is a very brief relief that will very surely bring hell upon you sooner than you think.
There's also people who will ask for money and blow it instantly. We were doing risk assertion for a customer that asked for a credit yesterday. When looking into his movements we saw he already asked for a 1500€ elsewhere and got it just as this month started. Then, last THURSDAY he blew 500€ on Bingo (and he either didn't win shit ot the didn't put it back into his account). There's a neverending ammount of people like this. Or that think that they bank will straight un gift you money. Or that don't understand what a debit card is. Or that they can pay off their current debt with a cheaper debt.
If you don't have those kind of problems you should be very grateful you got an education as basic as it may be. When dealing with this stuff it could literally save you for ruining your family's life forever.
