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Five Leading Personal Bankruptcy Causes

Five Leading Personal Bankruptcy Causes
"""Congress recently made bankruptcy eligibility more challenging. With the current state of the economy, unemployment at an all-time high, foreclosures looming in every neighborhood, and credit card companies charging exorbitant interest rates, it is difficult for individuals to escape the shackles of debt. What are the fundamental causes of insolvency? Listed below are the top five causes.

1. Unemployment

Despite the fact that many families have two incomes, the loss of just one is typically sufficient to drive people to the brink of financial ruin. Having no savings, a large amount of debt, and no income is a prescription for disaster. Typically, unemployment income is substantially less than previous earnings, and it is taxed! People begin to juggle payments, fees begin to accumulate, balances rise, and mail begins to fill up with notices.

2. Credit Card Burden

All forms of media constantly bombard us with messages that we ""need"" more material goods. We require larger televisions, new automobiles, a new visage, straighter teeth, and various other devices. We have expenses that our great-grandparents could never have conceived. We purchase items that never leave the packaging, the majority of which cannot be resold for 10% of their original value, and we do so on CREDIT!

3. Natural Catastrophes and the Absence of Insurance

It does occur, as Mother Nature does as she pleases. Tornadoes, hurricanes, blizzards, earthquakes, tsunamis, volcanoes, and inundation can all obliterate your home or business. Sometimes government funds are available, but usually it is too late. Losing your residence and possessions can have an impact on your employment, and you may become a statistic for reason number 1.

4. Dissolving Relationships

In multiple instances, divorce and separation are financially devastating. The high cost of litigation, the division of assets, wage garnishment, and nonpayment of child support result in difficult financial circumstances for all parties involved.

5. Illness/Injury

Whether an individual or a loved one is affected, illness and injury can inflict havoc on one's finances. People are sometimes required to quit their jobs or are fired because they need to care for a spouse, child, or elder. Exorbitant medical expenses may also be caused by a lack of insurance.

The aforementioned five causes can be eliminated or mitigated through proper planning, insurance coverage, savings, and my personal preference, passive income from a home-based business!

" - https://www.affordablecebu.com/

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"Five Leading Personal Bankruptcy Causes" was written by Mary under the Finance / Wealth category. It has been read 59 times and generated 0 comments. The article was created on and updated on 02 June 2023.
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