How can an individual most commonly acquire debt?

An individual most commonly acquires debt by being approved for a credit card. Credit cards allow consumers to borrow money from a lender up to a specific limit, enabling them to make purchases and pay for expenses without needing immediate cash in hand. This borrowing mechanism is often accompanied by an interest rate, which means that the individual incurs a debt that must be paid back, typically on a monthly basis. By utilizing a credit card, individuals can easily accumulate debt, especially if they carry a balance from month to month or use the credit for larger purchases.

In contrast, saving cash in a bank account does not create debt; it is simply a method of holding and managing personal finances. Selling an asset for cash generates income rather than incurring debt, while borrowing from a bank without collateral, while also a method of acquiring debt, is less common for most individuals. Many banks require some form of collateral to secure loans, making unsecured borrowing less frequent for the average consumer compared to credit card use, which is widely available and accessible.