How to Overcome Financial Problems
How to Overcome Financial Problems
By Claire Tak Updated June 4, 2021
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It keeps you up at night, it’s the constant mental burden that causes you stress and anxiety. Money problems — it can feel impossible to solve and according to a Stress in America survey, two-thirds of respondents say it’s their number one reason they worry.
In a recent Well Kept Wallet survey of 1,000 consumers asking how financially stable they are, 40 percent admitted to not even having a savings account. Plus, 38 percent said they don’t have a monthly budget.
This problem is indicative to some of the challenges facing Americans today, why they fall into such financial binds, can’t seem to save money, and live a debt-free life.
Reasons Why People Face Money Problems
It’s easy to assume that those who face challenging financial situations is because they’re irresponsible and perpetually overspend on their credit cards. While this is sometimes the case, many times money problems occur because of sudden debt and very little to no savings to remedy the situation. Medical bills are the no. 1 reason for bankruptcy. It’s not uncommon for a family member to suddenly get sick and not have enough health insurance to cover the costs, or worse, not have any insurance at all.
This was exactly what happened to a friend of mine. She injured her leg during a ski accident and as a result, found herself suddenly facing $55,000 of debt. She didn’t have health insurance at the time and the aftermath of the accident required several surgeries. This was over five years ago and she’s still paying for that debt.
Other times, money difficulties arise from a failed small business or loss of a job.
Abusing Credit Cards
Other times, the problems are completely preventable and caused by a lack of saving, budgeting, and understanding how to properly manage money.
Try Googling “how to get out of debt” and you’ll see tons of stories about people making drastic changes to get out credit card debt that they quickly racked up without even realizing it.
Keeping Up With Your Peers
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