When you hear the word ‘bankruptcy’, you probably think of credit card debt. It is true that many people fall victim to taking out multiple credit cards and misusing them as if they were extensions of their actual income. Bankruptcy in general affects millions of Americans who get in over their head with financial obligations they are helpless to satisfy.
What finally puts an anchor around someone’s foot in the waters of debt is not always credit cards. The surprising fact is that many Americans file bankruptcy due to unexpected medical expenses. When families and individuals fail to have an adequate amount of savings to keep themselves afloat, it becomes highly difficult to come out of the storm unscathed.
Medical expenses and financial tragedy
When someone experiences a medical emergency, they are often unable to continue working and earning money as before. This also causes a strain on those who depend on the injured person for financial stability. Not only are medical bills soaring, but the ability to work and provide income is simultaneously plummeting. It is a terrible situation for families who live paycheck to paycheck and have little to no savings.
Save, save, save
The best way to reduce your odds of experiencing serious financial disaster is by feeding your savings account generously. You never know when a medical emergency will arise, or costly vehicle expenses will pop-up. Without enough savings, you are completely at the mercy of donations from others, or forced to sell your assets, work more and/or file for bankruptcy.
Ensure you and your family is protected with a savings account. Although you may be saving for a vacation or big event, you will be grateful you can cover the emergencies that occur unexpectedly. Bankruptcy is avoidable when you plan and start saving money as often as possible.
