5 Most Common Causes of Family Money Problems

Worried mature couple calculating home finances. Man and woman are sitting on sofa

Many families in the US are struggling financially right now. The current economic situation in our country is that the rent keeps going up, but our incomes are barely changing. It’s left thousands of people, maybe millions, in very difficult positions. Most of these people are put in these awful positions by the same things.

Most Common Causes of Family Money Problems

  1. Medical Expenses – For families with little or no health insurance, a serious injury or illness is enough to cause a financial disaster. Medical emergencies tend to happen at the absolute worst times. They are ridiculously expensive, and the most common reasons people give for contemplating bankruptcy.
  2. Credit Card Debt – Credit cards may seem like a lifesaver when you’re short on actual money, but in truth, they only make things worse. The only people who can safely use a credit card are the people who have enough money that they don’t need to. Using credit cards to get by when you have no cash is a sure way to build up scary amounts of debt.
  3. Job Loss – It’s not uncommon for a family to have one “breadwinner” who brings in most, maybe even all, of the income. Imagine if that person lost their job. When the breadwinner in a family loses a job, it’s like the whole family lost a job. Even if you land another job soon, that time spent not working can put tremendous stress on the family finances.
  4. High Cost of Living – Another common problem is living beyond your means. Trying to maintain a high standard of living is dangerous, especially if it means you can’t save money or are putting yourself into more debt.
  5. No Savings – Not saving money, whether by choice or not, is another common cause for family money problems. Without a significant savings, medical emergencies or job loss can mean financial catastrophe.

Bankruptcy is often a great solution for individuals or families struggling to make ends meet. Chapter 7 bankruptcy is the quicker fix, but not always possible. Chapter 13 bankruptcy offers the chance to reorganize and pay off debt easier, then discharge the rest. A bankruptcy attorney can help you determine your best options.

The Manalapan bankruptcy lawyers at Garland & Mason L.L.C. are here to help you find the best solutions to your financial struggles. You are not alone. Call us today at (732) 358-2028 or contact us online.

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