Some people hold the opinion that anyone in need of filing for bankruptcy is fiscally irresponsible. While we all tend to overspend from time to time, the truth is the majority of Americans are not “living outside of their means”. In fact, what is really going on these days is that our “means” have become so tight and limited that most of us can’t help but go outside the lines at times.
Common Budget Busters
The costs of healthcare have risen by double digit percentages in the last ten years and are expected to continue to rise in years to come, although not as significantly as in years past. Health insurance companies are revising plans to save their own dollar, such as increasing deductibles and cost-sharing, which lead to additional out of pocket expenses for consumers. Until deductibles are met families are faced with the full liability for any medical bill, leading to massive medical debt burdens that are quickly becoming a leading source among bankruptcy filings. Further, employers are dropping out of providing group health insurance benefits to their employees leaving families stuck paying the full monthly premium. With the average cost of health care premiums for a family of four upwards for $500 a month, most people’s are finding no room in their budget to cover these monthly premium payments.
Another source of rising expenses is the cost of childcare. For many families, paying for private daycare or primary school is their only option to allow parents to work for a living. The costs of childcare have also risen significantly in the last decade, in many cases soaking upwards of 80% of the paycheck from one of two working parents. With no other option for child care and the inability to afford to stay home, many families are finding themselves scraping by just to provide for their families.
The unfortunate truth is that today’s economy isn’t what it once was. While your parent’s may have saved enough money to buy a brand new car in one summer, you would have to work three summers achieve the same result. Your parent’s didn’t need a college degree to obtain a decent living, but you do and to get that degree means graduating with $15,000 in debt or more. Economic differences are the undertones of today’s financial problems, not simply someone who spends too much and doesn’t make enough. If you or someone you know is experiencing debt problems, contact an Ohio bankruptcy lawyer to review your options for debt relief.