Typical Causes Of Financial Difficulties And A Fast Solution
Financial difficulties come in all shapes and forms. They impact the young and old, single people and large families. They can come and go or linger for years.
The causes of financial difficulties vary as well, but there are some common situations that can lead to financial distress.
Here is a look at some of the most typical causes of financial difficulties — and one option for quick assistance.
7 Typical Causes of Financial Difficulties
1. Lack Of Financial Literacy
Understanding the basics of personal finance is half of the battle to combat the causes of financial difficulties. Financial literacy covers everything from knowing how to create a budget and using it to reach financial goals, understanding how different banking accounts work, and using a 401(k) or other means to help save for retirement.
2. Not Sticking To A Budget
Making a budget is a key part of financial security, but not following it is one of the top causes of financial difficulties. When you step outside of your budget, it puts your financial health at serious risk in the present and the future.
When you’re not following a budget, you’re also putting your own money goals on the backburner.
3. Change In Income
Yes, a shift in income is a no-brainer among the causes of financial difficulties, but even a slight tweak to what you bring home each month can have serious ripple effects.
Whether you’re in between jobs, have a new job at reduced pay, or are hit with the end of an income source such as unemployment payments, disability assistance, or child support, any of these can bring financial instability.
4. Medical Bills
Even if you have solid health insurance, one trip to the hospital can have a substantial impact. Many are unprepared for paying for hefty medical bills that come with medical care, which are among the usual causes of financial difficulties.
According to a recent survey, about 50% of those with large medical debt owe over $2,000.
5. Not Being Honest with Yourself
It’s tough to admit that you don’t understand a financial concept or that you’re struggling to manage your finances properly. Not being truthful about your expenses and spending habits is among the most insidious causes of financial difficulties.
When making a budget, be sure to list your complete monthly income as well as every single monthly expense, including both needs (rent or mortgage, clothes, utilities) and wants (eating out, TV streaming services), and pinpoint how you can adjust your habits to get out of a financial hole or set some responsible future goals.
6. Educational Expenses
Student loan debt is an epidemic in America, and it’s just getting worse as higher education costs continue to rise. Consider this: a student on average takes between 9 to 15 years to completely pay off a loan with debt after graduation ranging from $17,000 to $29,000.
Student loan borrowers typically have no option other than to pay their loan amounts in full — and quickly — to put themselves on a better financial path.
7. Divorce And Family Issues
Divorce in America is common — and costly. A division of assets or awarding of assets to one partner over the other can even lead to drastic financial steps such as bankruptcy. Those used to a certain lifestyle soon find that their spending habits suddenly fall far above their means.
In addition, a range of family issues can also take a financial toll. Perhaps you’re a caregiver for a family member and must cover an additional person joining your house or pay for assisted living care.
A family member may ask for your help in paying for a medical procedure or ask you for a general financial loan.
A Fast Solution Option
Financial difficulties can be exasperated by a financial emergency, such as an emergency room visit, last-minute travel, or a needed car or home repair. A payday loan online is an option to address a financial emergency quickly and easily.
Designed to bridge the financial gap in between paychecks, a payday loan online is specially designed to address such financial emergencies. In as little as 30 minutes, you may qualify for a payday loan online of up to $550 at Carolina Payday Loans, Inc.
The first step: head to our homepage and fill out the short payday loan inquiry form. Very soon after you submit, one of our friendly loan representatives will give you a call to discuss the items needed to qualify, answer any loan questions you have, and guide you through the rest of the process.
Once you are approved, you will get the cash you need the same day or the very next business day.
Get Started Today
Financial difficulties have several common causes, but if you’re looking to overcome a devastating financial emergency, consider pursuing a payday loan online. Simply head to our homepage, give us a quick call, or visit one of our locations near you today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.