Did you know that more than 50% of Americans find themselves in some form of debt? Despite this overwhelming statistic, individuals keep growing their liabilities by taking out more credit. It is estimated that 1 in 3 Americans hold 10 or more credit cards. It is difficult to pinpoint one specific culprit of financial debt. Debt comes in various forms, but all leave individuals feeling defeated, helpless and unsure of how to remedy their situation. Here are the top three reasons individuals in the U.S find themselves in debt, as well as few suggestions to help these individuals make the slow climb to financial freedom.
Poor Money Management
Often times individuals are either unaware they have racked up extensive financial debt or were never properly taught how to create a monthly budget. The best method to start budgeting is to start keeping track of each transaction; it has become so easy for us to make a purchase with the swipe of a credit card without a second thought of the money needed to actually pay for the item. By keeping track of each transaction, you can look back month to month to learn which expenses are necessary and which ones can be eliminated the next month.
Till death do us part does not always end up as the vow states. Today, the divorce rate in the United States is almost fifty percent. Debt quickly adds up when the two parties cannot reach an agreement, forcing unwanted attorney fees and potential loss of equity in the settlement. If possible, and your partner isn’t being totally unreasonable, try to come to a middle ground. In the end, it will save you both vast amounts of money, stress and exchanged harsh words.
Although medical bills are not something that you can avoid altogether, they are certainly a larger expense that should be closely monitored and tracked to ensure you are being billed and invoiced correctly. Many times bills amass without insurance policies being factored in correctly, or unpaid bills gathering costly late fees. Be sure to talk to your insurance provider about any expense medical charge before you instinctively throw it on the credit card. Be smart and look at every bill with a discerning eye, it will surely help you save money at the end of the day.
If you ever find yourself feeling like a sinking ship and need a cash loan to help bail you out, contact Tio Rico today and ask about our personal loans. These short term loans come with flexible payment plans to help fit your needs. Tio Rico Te Ayuda is here to assist you in making the first steps in removing the heavy burden of debt.