Are You Most At Risk Of Debt? Let’s Change That!
Did you know that some people are more at risk of going into debt than others? This is often based on demographic traits and personal issues. For instance, some people will be on a low income. If you are on a low income, you are far more susceptible to debt compared to other people. Particularly, if you are close to or scraping near minimum wage. Why is this? Quite simply, you won’t have enough money in your account to afford everything you need through the year. You certainly won’t be able to manage some heavy, often unexpected costs.
As such, you will need to look at ways that you can correct or adjust this issue. One of the ways you can do this is by ensuring that you do have some money in savings each month. You should be saving a little of your earnings and locking it away. This can be disaster money and help you deal with those unexpected costs that we mentioned.
It’s best to treat this type of saving like a tax. This means that you should set it up to automatically leave your account each month. You shouldn’t have a chance to skip saving each month because if you skip saving once you’ll want to do it again and again.
You may also want to think about ways to boost a small income. You can do this with a side hustle. Using a side hustle, you can easily increase your income by utilizing your spare time more effectively. However, those on a low income are just one of the groups at risk of debt. Let’s look at a couple more.
Those With Existing Medical Conditions
Do you have a medical condition that has been impacting your life for quite some time? This could be a long-term injury or an illness like diabetes. You may not realize it, but a condition like this can have severe impacts on your finances rather than just your health. You will likely have far more medical bills and costs. Are you taking out insurance? This too is going to be higher, and you might even find you need to pay for changes to your home that a typical individual wouldn’t need to deal with.
There are lots of ways to deal with these types of extra costs. One possibility you should consider would be legal action. Was your condition caused by someone else’s mistake? A personal injury attorney can help you get the money that you are rightfully owed that will guarantee you don’t end up in serious financial trouble.
Family Of Five
Larger families are more likely to be in some form of debt. Kids are notoriously expensive, and this is worth considering before you aim for that dream nuclear family. Can you afford to cover the costs? Luckily, parents, these days have various options and ways to add to their income. Moms staying at home have fantastic opportunities to make money from blogging or freelancing in their spare time to make sure that they never have to deal with the issue of not being able to pay the bills.
We hope this helps you if you are in one of these groups most at risk of going into debt.