Bankruptcy and debt are often wrongly attributed to reckless spenders. However, this is a misconception. The average working person in America is currently struggling to make ends meet, and it only takes one unexpected expense to send debt spiraling out of control.
Outlined below are two significant expenses that often come out of the blue.
Medical expenses
People can’t anticipate falling ill or getting into an accident and suffering serious injuries. Both of these things require medical care, which isn’t cheap. Insurance only goes so far, and medical treatments are a common source of out-of-pocket expenses.
Medication costs money and most surgical procedures cost at least $10,000 and often far beyond that. Rehabilitative care is also expensive and it is something that insurance policies don’t always take into account.
Vehicle repairs
The majority of employees drive to work. This means that an operational vehicle is a necessity. Vehicles aren’t indestructible, and they require routine maintenance, which is expensive. Even with maintenance, cars can break down. Road traffic collisions where the vehicle is damaged are also a real possibility.
Insurance won’t always cover such costs, which means people can be faced with unexpected expenses. Vehicle repairs are not cheap, especially when the car has been damaged significantly. When a worker is faced with not being able to travel or having to pay for repairs, they have to take the latter option, which can cause financial difficulties.
If you’re struggling with finances then it is important to be proactive. Seeking legal guidance can be a good place to start.