We all have been through enough life instances to know that life is unpredictable. Those unpredictable instances can be pleasant surprises and then some of those instances can be major curve balls thrown that make life much more difficult to endure, especially from a financial point of view.
If you hadn’t noticed, more and more people are finding themselves deep in financial debt. Now a lot of the reasons why people are in debt are due to their own choices while other people’s debt is due to unforeseen circumstances, but in addition to that, there are also some factors that are often overlooked by many people that are the direct cause to their debt, and they don’t even realize it.
Enduring debt is definitely not fun. It can keep you from making major purchases like a car and it can force you to be turned down for large loan amounts to pay off smaller debts… but just because you are in debt, that doesn’t mean that it has to define you. It’s not like only bad people are in debt, by any means.
We are human and we make mistakes, especially in the finance arena, but it’s also a mistake that you want to learn from and not make again. Here are some of the biggest areas of financial curve balls that life throws at you, forcing you to succumb to debt.
According to LifeLock.com, around 60 million people were victims of identity theft in 2018. Identity theft is when someone opens an account in your name without your permission. So if you’ve seen new accounts pop up on your credit report or received a bill in the mail for an account you know you didn’t open, then you are definitely a victim of identity theft.
The FBI uses criminal and cyber resources to track down various crime groups involved in illegal activities. This is actually something that’s not your fault but you can prevent it from happening by creating difficult passwords to various accounts so they can’t be hacked and you also want to consider identity theft protection services as well.
You might be the safest driver in the world but you’re sharing the road with some of the world’s most unsafe drivers as well. Getting injured in a car accident and suffering injuries can lead to missed days of work due to injuries as well as no longer having transportation to and from work. Not only that, car accidents incur expensive medical bills as well as prescriptions to treat some of the injuries you’re suffering from. Those reasons are some of the biggest reason why people get sucked into debt.
Incurring debt from a car accident is actually something that can be temporary if you take the right steps after an accident (getting driver information, keeping track of medical bills, taking pictures of the accident scene for proof). One of the first things you want to do is get in contact with a personal injury lawyer… and not just any lawyer either… you want to contact a lawyer with proven verdicts and settlements to get you the justice you deserve.
There are some people in debt because they simply just don’t know too much about money. Can you fault them though? To be fair, in high school, students aren’t taught about finances and credit so a lot of people just spent their money recklessly but as you grow older you have to take it upon yourself to get educated on it.
People who don’t have the financial experience or knowledge to make smart financial decisions sometimes end up being dependent on credit cards or loans with extremely high-interest rates which cause them to pay hardly anything to the principal balance with the minimum payments they make.
You hear people with kids advise other people wanting to have kids to make sure it’s something they really want to do because it’s a big responsibility taking care of someone else in addition to yourself. This advice is not only coming from a standpoint of “it’s no longer just about you” but more so from a financial point of view… kids are expensive!
From the hospital bill after having a baby to the cribs, strollers, car seats and other baby accessories needed to raise a child, you’ll constantly be asking yourself “Where did our money go?”