samedi 25 juin 2016

Major Reasons For Bankruptcy In Chicago

By Richard Stewart


The rapid changes in the economic have negatively affected most persons. As a result, the cases of bankruptcy have been on the rise. Many individuals are declared bankrupt every year. Such news catches most persons by shock and can be devastating. Some may cause depression. However, it is key to note the top reasons for bankruptcy in Chicago.

Medical expenses. Recent studies have constantly indicated that medical costs amount to a big number of bankruptcies. There are many persons that file for bankruptcy due to medical costs such as health insurance. If you do not control such costs, you may find yourself in such a crisis.The constant cutting down of income by most companies. Due to the hard economic conditions most companies are being forced to cut the salaries of the employees. Such major cuts in bonuses and salaries affect the persons and make them end up in liquidation.

Income deduction from companies. The amount that is cut off from your salary depends on with the current economy. If this activity becomes common, you will end up losing a lot since the small portions will amount to a large sum of money. This will make you end up in liquidation.

Irresponsible spending using credit cards. Most people are spendthrifts and are not cautious while using credit cards. Credit cards charge high interests, and if you are not cautious, you will end up in big debts. It could pile up due to various causes such as emergency expenses, disability, and job loss.

Use of credit cards without limits. Credit cards are easy and so reliable to use. You can easily overspend when shopping using them. Apart from that, they also charge the highest interests. This is so crucial since you may land into debts caused by emergency expenses and loss of your current job.

The numerous unexpected costs. Nowadays the number of unexpected emergencies are quite high. They may involve a car breaking down, and you need to have it in order or even a catastrophic storm damage. Thus, such unplanned cases can claim your savings in just a short time.

The high utility bills. The utility bills are constantly surging. For instance, the cost of the air conditioning electric lighting and water can be a huge burden. You may find the bills surging every month and may become a major expense in your home. If you are unable to control such costs within a certain duration, they may fall out of place.

Our homes are always our biggest investments and therefore when it comes to losing it due to some reasons, people will often do anything to avoid that. Some even go as far as filing for bankruptcy to prevent the foreclosure of their houses or any other asset.

Lack of a budget work plan that will guide you on what you need to purchase and the amount you should spend in a month. Not having a budget frame will lead to cases of overspending during inflation since things will be affordable then. Overspending can therefore also lead to bankruptcy. You may also end up being a victim of debts.




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