Thursday, April 20, 2017

Know Your Enemy And Fight Debt

fight with debt
Debt is a nightmare that we hope we can all avoid, but the truth is, not many people do. 8 out 10 Americans are in debt and if you find that shocking, you shouldn’t. Debt is actually a built in part of society and the economy. In fact, the economy probably wouldn’t function too well at all without at least a small percentage of the population living in debt. There are too many products being sold that people buy when they can’t afford them, keeping the economy in check. Then there’s the situations where you have no choice but to borrow. If you have bought a home recently, you’ll know that you had to take out a mortgage. That’s a loan under another name and does leave you with high levels of debt. Student loans are another common cause costing upwards of hundreds of thousands of dollars.

Of course, we do have to distinguish between typical debt and high levels of debt that can’t be handled. If you’re desperate to avoid a situation where you have to sell your home to escape debt, it’s important to know the causes. If you know the causes, you should be able to avoid them completely. Or, handle them if and when they arrive. So, let’s look at some of the most common causes of debt in America.

Are You Feeling Alright?

You probably won’t be next time you take a look at your medical bills. Medical bills can be incredibly expensive. Typical procedures can cost anywhere up to ten thousand dollars, and you might think that’s manageable enough. You might, if you have the cash in your account, not even bother to use your insurance coverage. But that’s probably just the cost of certain medicine. If you need a surgical procedure or a transplant, it could cost you anywhere above five hundred thousand. That’s not so manageable, is it?

It’s unsurprising then that medical bills are one of the most common causes of debt. It’s not just the cost, it’s the fact that it hits you in one massive bill. And no, those costs aren’t immune to interest. You could very easily have paid a lot more than that by the time you escape your bills.

Thankfully there is help for situations like this. First, you might have been injured due to the actions of someone else. If that’s the case, then you can get help after an injury. You can speak to an accidental injury attorney. They’ll be able to advise you on the right steps to take to get the compensation that you might desperately need.

There are also people who help with expensive medical bills. You can consolidate your debt making sure it’s easier to pay off. They might even argue against the high costs if you are unable to afford them.

Sorry, We’re Going To Have To Let You Go

It’s just one of the many sentences that strike dread in the hearts of employees. However, that sentence has clearly been used a lot because according to statistics over 94 million people are unemployed across America. That’s just above forty percent of the population, and it is staggering.

If you are unemployed, you’ll be under immense financial pressure. You’ll struggle to pay the bills, keep up with mortgage repayments and generally, keep your finances in check. Although, there is a way lessen the blow of unemployment and make it easier to find a new job. While you are employed, you should be working to boost your skills and your experience. This will make you a far more desirable candidate for employees.

As well as this, you should be searching for jobs while you are comfortable working for a company. That way, you’ll already know what’s out there and hopefully, have a few positions in mind if unemployment does rear its ugly head.

Aside from this, you may want to consider setting yourself up as an independent worker as well. As an independent worker, you will be able to open yourself to freelance possibilities. Short term contracts may not be the final solution to your problems, but they could help a great deal.

On Credit

Although debt in some ways benefits the economy, it’s clear that too many people are living past their means. There are numerous possible causes for why this is. Perhaps, the cost of living is simply too high, and people have no choice but to live on credit. This is particularly true for those individuals with disabilities who have more trouble with debt that almost anyone else.

However, there are also those people who can afford an average quality of life and want more. So they borrow, mounting up credit card debts right up until the point where they can’t borrow any more money. The problem with credit cards is that you can use them for a lot longer than you should be able to. And as usual, it’s the interest that’s the real killer. Once the interest starts building on the money you’ve used, it can quickly grow out of control. That’s why if you are using credit cards you should work to pay off any bills as quickly as possible. Don’t let them mount up as this will almost always lead to debt.

If you do need to rely on credit for expensive bills, you should look into interest-free options. This will allow you to borrow money without the threat of interest as long as you pay it back within the time limit.

Bad Loans

Alternatively, you could end up in debt because you have borrowed from the wrong source. Some lending companies are nothing more than debt traps, charging obscene levels of interest and hidden costs. While there is movement in Congress right now to limit the power of these companies they still exist. You can borrow thousands online and find thousands added onto how much you owe in just a few months.

You should always research and read the terms of a loan carefully before you commit to taking money from any lender.

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