6 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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Jussie Smollett, If You Wanted To Advance Your Career, Staging A Hate Crime Was Not The Way To Do It

You should strive to be known for your career instead of creating controversy.

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On January 29, Jussie Smollett made a call to the Chicago Police Department and reported that he had been the victim of a hate crime by two men wearing MAGA hats, shouting slurs at him and that "This is MAGA country", throwing bleach on him, and performing a mock lynching on him. The police found him in his apartment with a noose tied around his neck.

However, after much investigating on the part of the Chicago Police Department, it has been revealed that Jussie Smollett hired two brothers to perform the attack on him.

He organized the attack, as well as mailing himself hate letters because he was "dissatisfied with his salary" on the television show "Empire" and trying to boost his publicity. Smollett turned himself over to the Chicago Police Department on Thursday morning.

Smollett's actions are very unusual and disrespectful, to say the least. It's very strange that he would willingly subject himself to the acts which he claims to hate. When you take a step back and look at the situation through an objective lens, this is too extreme to handle a disagreement over a lower salary. Committing felonies is not the way to get a point across. Smollett hurt not only himself but also the two people he hired to perform the hate crime. He caused more damage than he probably intended to cause for everyone involved.

In addition to all that, he greatly disrespected the Chicago Police Department.

Chicago has a higher crime rate than the average rate in the US, which puts a huge strain on their police department. The superintendent of the Chicago Police Department said in a press conference Thursday morning that he was saddened that this took away attention from the real gun crimes which are affecting innocent families in Chicago. The police essentially focused all their attention on an act which could have been prevented if Smollett had simply been willing to communicate with people with whom he works on "Empire". They really and truly should have focused on innocent people who were victims of very real crimes.

Staging a hate crime is no way to advance a person's career. It simply desensitizes people to the reality that hate crimes do indeed happen.

The world is an imperfect place, so things like that, unfortunately, still happen. However, organizing a fake one only causes people to be skeptical whenever one occurs.

When people hear about a hate crime happening on the news, now there's a chance that they will wonder, "Was this staged? Or did it really happen?" This could lead to people disregarding hate crime claims in the future, thus potentially causing people who suffered through them to not get the help they need.

There are so many other ways to make a name for yourself, ways that don't involve violence. You don't need to commit felonies and pull other people into these actions in order to make a point. I genuinely wish Jussie Smollett had thought his actions through more and decided to not jump to extremes to get what he wanted. He could have gained much more positive publicity that way.

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How to Cope With Anxiety and Depression

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Anxiety is something we all experience from time to time. Every now and then there is a stressful situation causing us to feel worry and restlessness. The only problem is, people suffering from anxiety only know the feeling too well since it has become too frequent in their lives, and it can amount to a panic attack. Even worse, anxiety often leads to depression, and it is extremely difficult to deal with these conditions. However, it is not impossible. Here is what you need to implement if you begin to feel/are feeling anxious or depressed, and you have started to notice the unpleasant emotions are appearing more and more often.

Develop a habit

While there is a plethora of tips about what needs to be done when you have an anxiety attack, the tricks often don't seem to work. Why? Because you haven't created a habit of calming yourself down in that way. If you wish for any strategy to work, you have to train your body and your mind into accepting it. The more you practice, the quicker the peace and relaxation come.

Decide on a technique and start applying it. You can choose deep breathing, meditation, taking yoga or tai chi lessons – whichever appeals to you and suits your current situation. Even going to a spa center is a strategy. The point is to dedicate enough of your precious time to your health, and to do it regularly.

Get healthy

Some of the disorders can be inherited, but we are definitely stronger and less prone to them if we keep ourselves in good shape. It's only too easy to become anxious or feel down if you are physically and mentally exhausted.

For this reason, take good care of your body. Eat healthily and regularly. Opt for foods that will keep you full for longer, and avoid immediate sugar boosters, which cause a sudden energy drop afterwards. Make sure you get enough sleep every single night, and do exercise regularly.

Use natural remedies

Along with changing your diet, try to use natural remedies which have long been known for their calming effects: Chamomile, Rhodiola, Valerian root, Lavender, saffron…Recent research has shown that using the best CBD oil for anxiety is extremely recommendable, too, but you should always consult your doctor first.

Spend time with friends and family

As a species, we are social beings, and you have to embrace this fact. In short, it means that we are in need of each other's company, and we feel bad if we don't spend enough quality time with our loved ones. Always make some time for a friendly chat, as this should help you feel better.

Go to parks

Or any other area with plenty of greenery. You don't have to be a fan of camping so as to feel the benefits of spending some time in nature. Like it or not, but nature has a calming effect on our minds and bodies, so dedicate some time to going for a walk in the nearby park or a forest, but stay safe.

Change your focus

This is another technique that needs practicing, and it's not just about changing what you are thinking about. You have to train yourself to change the emotions the moment you start thinking about something nice and pleasant.

Get professional help

Most importantly, do not delay seeking professional advice if you notice any of the symptoms. Anxiety and depression are health issues, and you should treat them as such. If you had high temperature, for example, you would visit a doctor. It is the same way with mental health – don't neglect the symptoms.

To sum up, ask yourself one question: are you really doing everything in your power to overcome the conditions? Start applying the advice we have compiled for you, and the results should start showing after a while.

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