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Common factors that contribute to financial problems

On Behalf of | Jul 18, 2019 | Uncategorized |

As you entered your adult years, you likely hoped that you would have a good job and earn an income that allowed you to live your life without financial worries. While many North Carolina residents have this desire, it does not always work out. Though you may have obtained gainful employment and felt comfortable in your financial situation for a time, money problems may have come about more quickly than you anticipated.

If you are facing considerable debt, you are not alone. Numerous people find themselves in this type of predicament for a variety of reasons. In some cases, circumstances outside of a person’s control could have led to the ordeal, and in others, poor personal choices could have contributed.

Do any of these sound familiar?

As you wonder how to handle the financial problems plaguing you, you may also wonder how you ended up in this dire situation in the first place. Though each person’s case is different, some common factors show up, such as:

  • Job loss: Even if one anticipates a lay-off, losing your job can easily cause substantial money problems, as a lack of income is a serious matter. Even with savings, prolonged unemployment can lead to serious debt.
  • Unreliable financial advice: Taking the wrong financial advice can make money problems worse or even cause them in the first place. If you invest in a get-rich-quick scheme or follow unreliable advice on how to handle a money matter, you may have ended up worse off.
  • Emergencies: Medical expenses play a part in a substantial number of bankruptcy filings, and you may have faced a serious injury or illness that left you with insurmountable medical bills. Even with your insurance coverage, you may not have had the ability to make your payments.
  • Poor personal planning: Even if you have a well-paying job, if you overspend or otherwise live beyond your means, that comfortable income may not be enough to keep you from facing financial problems.

While finding out how you landed in your tough spot is helpful so you can avoid those actions in the future, placing blame may not work in anyone’s best interests. Instead, you may want to focus on finding the best debt relief option for your situation and learn how to remain financially stable in the future. In order to gain reliable information, you may want to utilize local legal resources.