There is a huge financial crisis going on throughout Utah. Countless people are currently drowning in debt. But not all people are struggling financially for the same reason. When most people think of debt, they often envision overwhelming credit card balances, crippling medical expenses and the constant struggle to pay off student loans. But if you dig a little deeper, there are other overlooked factors that can often come into play, such as identity theft, taxes and making poor investments.
Failure to Stick to a Budget
There are a bunch of ways anyone can fall into debt. But there is one common reason–overspending. It may seem like basic common sense. But you would be surprised to learn how many people have no concept of living within their means. Debt can start very innocently. Remember when you got your first credit card? Maybe you went on a spending binge and bought tons of gifts. But eventually, every item must be paid. Regardless whether you are a college student or a married couple raising children, it is important for everyone to have a budget. But more importantly, it is vital to stick with that budget. The worst thing many people do on a monthly basis is spent more money than they earn. If you are in this type of situation, it is time to make a self-evaluation on how to cut those expenses.
Inflation
It is a cruel reality. But the cost of living goes up every year. Unfortunately, the same may not be true for your income. Take a look at your grocery bill. Chances are it was lower just five years ago. Whether it is filling up your car with gas, purchasing a car or house, everything adds up. If your income level remains stagnant, it is time to start cutting back on your spending.
High-Interest Rates
In today’s fast-paced world, it is important to be financially savvy. For example, many people do not pay enough attention to the interest rates of their credit cards. Many of today’s credit card accounts have interest rates that exceed 20 percent, making it nearly impossible for cardholders to pay off their balance.
Lack of Insurance
The healthcare crisis in this country is well documented. Far too many people in Utah either do not have health insurance or cannot afford coverage. It only takes one illness or health emergency to go from living comfortably to struggling financially. Simply visiting your primary care physician or dentist can be very expensive. But a trip to the hospital could result in the beginning of financial problems, especially without adequate insurance.
Are You Struggling With Debt in Utah? Bankruptcy Attorney Justin M. Myers Can Help
Overcoming debt is never easy. There are no quick or easy solutions. But it can become nearly impossible to do it alone. The first step towards regaining your financial freedom is to seek representation from an experienced and knowledgeable legal professional with a track record of providing effective debt relief solutions. Over the years bankruptcy attorney Justin M. Myers has helped countless people who have struggled with overwhelming debt. Whether you need to file for Chapter or Chapter 13 bankruptcy or need advice on debt consolidation, contact his Salt Lake City law office today and schedule a consultation to discuss your case.