Major Reasons Why People Go Broke

6 Major Reasons Why People Go Broke

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Having to admit bankruptcy is difficult and everybody tries very hard to avoid it. Nevertheless, both ordinary people and big businesses are equally susceptible to it. As a matter of fact, when discussing states, Alabama residents were in the first place in 2017 according to the personal bankruptcy filing rate. The statistics for 2018 are yet to be made, so let's take a brief look at some of the most notorious reasons for going broke so as the avoid them completely, if possible.

Medical expenses

The frequently quoted Harvard study points out that 62% of all personal bankruptcies occurred due to medical debts. What is more, that has almost nothing to do with medical insurance, since almost 80% of the poor people had some kind of health insurance.

Thanks to the advantages in medicine, technology is much more involved in the treatments and patients are cured at a better speed. However, that also implies higher costs. The more efficient a treatment is, the higher its price. In addition to this, despite the fact that most people have some kind of medical insurance, it is often too expensive for them, too. What is more, a health insurance contract can be really confusing and people don't pay enough attention to what exactly is being covered by it, thus ending up with both health and financial problems.

Job issues

According to one study, nine out of ten people facing bankruptcy were employed or receiving some kind of income. Somewhat surprisingly, you have more chances of becoming hugely indebted if you have a job. There are several reasons why this situation may occur.For instance, losing a job is one of them. If you are used to a certain income and have certain spending habits, it's hard to adjust to the new situation. Not to mention if there is a mortgage in the picture.

Divorce

Apparently, clinging to your marital status is quite a good decision. A lot of spouses lose a significant part of monthly income when they get divorced. Court appeals for a higher alimony can last for ages, and in the meantime the divorcee is left with reduced funds and increased expenses. Similarly, being separated carries almost the same risk. Even though the profile of an average insolvent person is someone who is still married, that person has a high chance of getting divorced, too.

Overspending

The tricky part about overspending is that even though your salary remained the same, and you haven't introduced any new products to your shopping list, or enrolled new courses, if the inflation hits, the money value drops, and this can eventually drag you down. Consequently, you should always monitor your expenses and calculate budget accordingly. On the other hand, getting a pay rise or a promotion can also result in overspending if you overestimate the new earnings.

Bad insurance

This category is usually named "unexpected expenses", but since we have already discussed medical costs (which usually occur out of the blue), the attention is now on natural disasters and different types of emergencies. A lot of those could have been avoided if you have had a proper insurance. For instance, a tree falling on your car after a storm can cause quite a damage, just like a sudden flood in your home. Such mishaps can have a serious impact on your savings, can't they? A proper and timely insurance would have taken care of them.

Carrying debt into retirement

Entering your retirement burdened with a debt is definitely not a good idea.

First of all, your regular income is usually much lower when you retire, even if your partner is still working. Secondly, you should remember the first point from our list about the medical expenses. At this age, you are more prone to illnesses and injuries, which only add to the overall indebtedness. The likelihood is even higher if the debt is related to a high-risk mortgage.

However, if you are facing a foreclosure, it can still be avoided with some legal advice by Philadelphia bankruptcy attorney Mr. David M. Offen. Sometimes even a free consultation is enough to get you out of trouble.

So, what conclusion is to be drawn from all this? First of all, we should all save more and pay greater attention to the above mentioned areas. If you have failed to do so, it may not be too late to consult with a person in the know who can offer a proper solution.

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How to Prepare an Enjoyable First RV Road Trip

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You felt excited when you bought your recreational vehicle, and now the thrill is even bigger since you are finally going to embark on your very first road trip with it. This vacation is going to be different from everything you have done so far. As it is the case with all firsts, there is a fair chance to overlook some important details, so here is a list of all the things you should check and do prior to setting off on your big adventure.

Take it for a test drive

Surely you have already done this before the purchase, but you could definitely make use of a few more hours behind the wheel. Since this is your first RV, it takes some time to get used to switching lanes, or driving it uphill and downhill. You'll also never forget to secure the drawers if you see anything flying out of them during a sudden turn.

Check the weather

It almost goes without saying, but make sure you always look for the forecast for a longer period than the length of your trip. Experiencing a storm in the middle of your journey is going to make it memorable, though not in a good way. Also, bad weather increases chances of accidents.

Check the paperwork

In short, collect all the necessary documentation. You should have your credit cards, cash, ownership documents, a map (in addition to the GPS device), and emergency telephone numbers. Furthermore, you never know what can happen on the road, so it's highly recommendable you get some kind of insurance, such as Good Sam Extended Warranty Protection, since this type of mechanical breakdown insurance comes with quite a few benefits.

Make a plan

Even though exploring the great outdoors with an RV seems to be a personification of spontaneity, you still need to have some fixed points, especially if you have small kids on board. Campgrounds get booked sooner than you think, so you had better do that on time. They are very convenient because you can find the necessary RV hook ups there, as well as other facilities. Don't take this for granted, though – always ask for details about their electrical, water, and sewage hookups.
As for the Wi-Fi, don't always count on it. Some campsites can be so crowded that it's almost impossible to get a good connection.

Glorious food

Surely you have in mind what groceries and snacks you're going to bring, but is your fridge in order? Turn it on 12 hours before you set off to check it's working properly. In order to cook food, you'll need pots, pans and dishes, too.

Ways to have fun

To make the trip truly enjoyable, think of different ways to entertain yourselves both indoors and outdoors. Bring cards, board games, or tablets. Kids can do some projects or some coloring activities. To really make the most of your vacation, do some research on what is going on in the area you are traveling to. Perhaps there is a festival, a funfair, or some interesting landmarks to be visited. Camping and time in a campsite needn't be the only highlights of your trip.

Necessities and extras

We have already mentioned some documents, but here is what else should be checked off the list.

A Swiss army knife, flashlights and a complete first aid kit are a must. You should also bring some medications just in case, as well as an insect repellent (there probably won't be a pharmacy around the corner when you need one). Toiletries are on the list, too.

RVs are quite spacious, so you can definitely bring your bikes, sleeping bags, hiking boots, as well as pillows for ultimate comfort. You needn't pack lightly when it comes to clothes either, but bear in mind the weather forecast.

So, you can finally get a taste of adventure and satisfy your inner nomad! Prepare well, and you will fully enjoy the whole experience.

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