3 Catastrophic Incidents That Can Put You In Debt Right Now

by - 11/09/2017 10:38:00 AM

I’ve discussed debt before and spoken about the importance of tackling it head-on. Well, one thing I want to talk about today is how you end up in debt, to begin with. It doesn’t just magically happen one day where you check your bank account and see you’re in debt. Sometimes, debt can gradually creep up on you, but it’s often caused by one decision or incident that rocks your life.

So, here are a few of the catastrophic incidents that could cause debt for you:

Getting Fired From Work

Losing your job is one of the worst things that can happen to you both emotionally and financially. Speaking regarding money, it rids you of your stable source of income. This provides untold problems and causes you to fall behind your regular payments. Bills pile up, and you very quickly slide into debt.

Now, you can gain a little bit of help in this situation if you feel you’ve been wrongly fired. Talk to some experienced unfair dismissal lawyers and see if you’ve got a case. If you do, you can sue for damages and get some money to help pay your bills. Ideally, you want to start looking for a new job right away to generate some semblance of income. You’re less likely to end up in debt when you have money coming in regularly.

Applying For A Short-Term Loan

There might be a time in your life when you need to buy something and think a loan is your best option. So, you get a short-term loan and have the money in your account within a day. The problem with quick loans is that the interest rates are often sky high, meaning you can end up in trouble if it’s not paid right away. Miss your payment date and the loan suddenly becomes incredibly expensive, and it’s harder to pay off. This goes on and on until you’re in serious debt.

The solution? Stay away from short-term loans, particularly if they’re bad credit loans or offer no credit checks at all. In these cases, the lender is praying for poor people like you that need money. Try and save up instead, it’s a much easier way of generating funds, and there’s no risk of debt.

Crashing Your Car

Getting involved in a car accident is one of the easiest ways to fall into debt. When this happens, you could have repairs to pay for, not to mention medical bills too. Plus, you may have to pay for the other person's damages if the accident was your fault!

Again, like when you get fired from work, you can seek legal guidance to try and form a case to sue for financial compensation. But, this is only the case when you weren’t at fault. At the very least your insurance should cover some of the car repairs for you.

You see; three catastrophic incidents can put you in debt right now. Each one can happen in a split second, yet change your life forever. What’s the best advice I have? Always be prepared for the unexpected. Have a financial plan in place just in case these problems happen.

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