One of the most important skills to learn going into adulthood is how to properly manage your finances and invest your money. Between covering living costs, such as food, rent, and utilities, there are numerous expenses that can quickly drain your bank account. Unfortunately, it appears that in recent years there are more ways than ever to accrue debt.
Filing for bankruptcy has become increasingly commonplace for many people. Whether it be chapter 7 bankruptcies for individuals looking to liquidate their assets, or businesses attempting to set up a payment plan with creditors, more and more people are desperately looking for ways to wipe out their debt. Just in February of 2015, an average of 3,422 bankruptcies were filed every day.
Medical expenses constitute one of the largest financial pitfalls that throw Americans into debt. Between medications, regular check ups, and emergency treatments, there is no telling how many expenses one must pay just to remain healthy. Around 64 million people, amounting to roughly 35% of the United States’ population, said they had trouble with bills or were stuck paying off medical debt in 2015.
For the younger up and coming generations, there is a newer and even more devastating hurdle to overcome that can prevent you from working to invest your money. Receiving a college education has long been the best opportunity for gaining employment. However, the financial costs of getting a degree have risen to astronomical levels in recent years. The overall outstanding student loan debt in the United States climbed from $1.21 trillion to $1.3 trillion just from 2014 to 2015.
Ironically enough, finding smart and different ways to invest your money can be one of the best ways to reduce debt. Selling lottery payments or getting cash for structured settlements can keep your savings protected until they are needed to cover expenses.