When we think of people in debt, the image of self-indulgent, overspending, undisciplined people come to mind. When in reality, a lot of the people who find themselves in debt are simply people with… medical problems.
According to the Kaiser Family Foundation, more than 25% of U.S. adults are currently finding it difficult to pay medical bills, and nearly half of Americans have some sort of medical debt in the mix of other worries. No wonder than medical debt is the principal cause for personal bankruptcy filings. The worst part is that a lot of these people have private or public health insurance as well!
So what’s the solution?
Emergency savings can help
Not getting sick is not an alternative. We age, we live, we’re born and we’re walking toward one medical need or another. That being said, a HUGE number of American’s do not have the income or the habits required to save at least $500 dollars (as we noted in our previous post). Think about that?
If cutting corners, flexible costs and overall spending doesn’t do the trick, some people have suggested part-time Saturday work or selling personal items can solve the issue. The goal isn’t to make an extra living. It’s to protect your current living by creating enough come to have at least $1000.00 in the bank in case of medical, vehicle, personal problem.
That’s the difference, for a lot of people, that leads to unmanageable debt from one day to the next.
Bankruptcy is no picnic
First of all, it isn’t free. It’s costly. And time consuming. Bankruptcy, and this is no joke, an relatively expensive process and needs research before it’s opted for. But mainly, your reputation gets SEVERELY damaged for at least 10 years. This means that anything from finding an apartment to buying a car will now be more difficult than ever.
If you’re in this situation, give us a call. Bankruptcy is not the only option. There are many ways to handle debt and we’d love to talk to you about it.