What Leads to Bankruptcy?

You’d hear a lot of reasons why businesses go bankrupt. But it doesn’t have to be businesses only. Individuals get bankrupt, too. Most of the time they are associated with not enough money, but that is only the result of what the individual’s behavior with his finances was. Here are some of the causes you can find at https://www.acta.fi that make bankruptcy so common today.

 

Job Loss

It doesn’t matter what is the reason behind the job loss, the loss of the only source of income that you have can be very devastating. Although this depends on where you live, some people could get severance packages, but might see pink slips on their lockers or desks. Without any emergency funds to draw from the worst situations and turning to credit cards only to pay the bills can be quite disastrous.

 

Medical Expenses

According to one study conducted at Harvard University displays that the number one cause of bankruptcy is the medical expenses, which represents 62 percent of all the personal bankruptcies. There was one interesting warning shown in this study wherein it showed 78 percent of the filers had basic health insurance, thus it takes out the myth regarding how medical bills only affect the ones that do not have health insurance.

 

Excessive or Poor Use of Credit

It is not surprising that some people have terrible control over their spending. Whether this be about installment debt, credit card bills, or any other loan payments left to pay can eventually get out of hand, until the time comes that the borrower is having difficulty in making even with the minimum payment on every type of debt. When the borrower sees it hard in accessing funds from family, friends or other people to acquire debt-consolidation loan, bankruptcy is usually the only answer for this.

 

There are more reasons to be find at https://www.acta.fi showing more reasons that people file for bankruptcy.