We’ve talked a lot in the past about how you can save money, spending less and keeping your finances in check. There are a lot of options here from saving on food shopping to price checking everything that you buy. What we haven’t discussed is how, despite these possibilities, families end up in financial trouble. It is worth considering what the problems could be to ensure that you don’t fall into the trap of a debt cycle. If you know what the issues are, you can learn how to avoid them.
Medical bills are one of the greatest causes of debt, and that’s true, even in the UK. You might think that you are covered because the NHS is free…right? Wrong, because sometimes you will try and skip the queues. You’ll want to make sure that your child gets the best medical care straight away without the waiting and wondering how long it will take to get the attention of a doctor. Going private will cost you money, and it could be thousands. Some people think this is worth it and are more than happy to borrow to pay for it.
The good news here is that people can default on payments for medical bills. Due to this, collectors are more than happy to reach settlements with people for these type of costs, if you present them with a suitable offer. According to debtsettlement.co, the first step is to get in touch with a lawyer or legal advisor. Have some money ready to present as a first offer, and this will get the ball rolling.
As of March 2017, 4.5 percent of people in the UK are unemployed. Fullfact.org has more facts and stats on this. You might wonder how long people stay unemployed after they first lose their job. On average, it’s around six months. In six months, you should find work again, though this isn’t always a guarantee. Even if it was, six months is still a long enough period to rack up a considerable amount of debt. You need to be careful and make sure that you are managing your budget effectively when you are unemployed. Adjustments will certainly have to be made so that you can limit your spending as much as possible.
Buying A Home
House prices have soared up to the skies once more. It’s a difficult period for first-time buyers, but that isn’t stopping new couples and families from trying. Unfortunately, research shows that buying property is a main cause of debt because people aren’t often ready for the expenses from bills to mortgage repayments. If you are thinking about buying your first home, make sure the financial commitments that you are taking on board fit into your budget. Otherwise, you will find yourself in a difficult situation where money is constantly pouring out of your accounts.
As you can see, there are various ways you can fall into trouble with money. But, if you know the issues you can work to avoid them as much as possible, ensuring that your finances stay healthy.