How does such a large amount of people get into debt? In the society in this day and age, it is appalling that many individuals discover themselves needing to pay off extensive sums of debt. It can be a rationally distressing circumstance. There is a wide range of circumstances in the matter of why individual and families accumulate debt. Some battle with money related control and moral obligation. While at the same time, other people who are more capable, can in any case succumb to debt in the event that they endure a sudden occupation misfortune and can't meet the money related necessities they are committed to. Money bundle and sudden events are the absolute frequent reasons why individuals fall into debt. Credit card …show more content…
On the other hand, an abrupt occupation misfortune or salary cut might turn out to be fiscally disabling and seriously modify the monetary position that they were once in. Presently those home loan payments, personal loans, student loans and auto loans get to be troublesome, if not inconceivable requests to meet. Individuals who lose occupations were they already earned high pay rates would enthusiastically tackle employments which pay fundamentally less to attempt to meet their installments. Yet, the promising finish to the present course of action appears to be very far, far away. Losing your employment is by all account not the only thing that can come out of the blue. Serious medical issues and extreme mishaps are likewise circumstances that are not anticipated. For the most part, somebody with a good medical care coverage approach can cover a large portion of the doctor's visit expense yet the rest of such an extensive sum, aggravated with lodging costs and the typical cost for living, can be a great degree of troublesome for them to pay off. It edifices the circumstance considerably more by being stricken to a single bed in the emergency room and not have the capacity to work and acquire
Martin and Lehren’s article “A Generation Hounded by the Soaring Cost of College” addresses the issue faced by current and former college students dealing with large amounts of debt due to student loans. The article presents the reader with stories of former college students who have either graduated or dropped out, and their struggle to pay off their student loans. The article also talks about issues such as students not being informed about high amounts of student loans and why student debts have increased. Martin and Lehren also make the issue of student debt more intimidating by giving examples of high amounts of student loans students have had. The article gives a very hard reality check to anyone reading as to how bad the problem of student debt is.
For much of the United States’ history, problems with private hospitals refusing to treat people without financial means and transferring them to public hospitals existed. Many patients who were in serious medical crisis did not survive the journey or many died soon after. This proved that these transfers can be detrimental to the emergency victim’s health.
As I was listening to Carol’s story, I realized that her story is one of many patients. Sure, she was lucky that her husband had advocated on her behalf when she was most vulnerable and she took over once she could but how many people could not? Juggling only two balls in the air becomes tricky once we name them “patient care” and “budget”. If we were to place Carol in an ideal hospital, would she have had the same expe...
‘Across the room from the Acutes are the Chronics… Not in the hospital, these, to get fixed, but to keep them walking the streets…’ (17)
There is a disease that is sweeping the U.S. at an alarming pace. It is called affluenza it is very contagious and growing at frightening rates. In 1997, an amazing 1.1 million debt plagued spenders filed for personal bankruptcy that was a 28.6% increase from '96. Economists predict another 1.6 million to file by the end of this fiscal year, (Shop 'til We Drop [STWD], 1997). These are two vivid examples of the amazing rate at which affluenza is growing. These numbers are occurring despite the strong economy and perhaps because of it. With the economy in the U.S. going so well credit card companies are issuing more credit. Consumers are then using their new found credit to buy without even thinking of how they will pay for the products. They get the credit cards because of the appealingly low 5.9% introductory rate and go for it, but the credit card companies usually run those rates up to 18% or more in the first six months before the consumer pays off the purchase, (Insight into the News IIN, 1997). This in turn leads consumers into over extending themselves. Although 96% of all consumers are using credit cards responsibly according to American Bankers Association '97, the typical person who files for bankruptcy takes home less than $20,000 a year and has more than $17,000 in credit charges and of that's not overextending oneself what is. It seems that debt and affluenza go hand in hand and that combination can't be good for relationships.
The absence of immediate medical care and the likelihood that significant delays may occur before medical care when injured by equipment on the vessel or by their own carelessness.
To understand the student debt crisis, one must first understand what caused it and what results from it. College undergraduates use student loans to finance the cost of tuition, room, board, transportation, and personal expenses while attending (Gage and Lorin). Student loans are different from other forms of debt because basic consumer rights like bankruptcy protection don’t apply to students who default on their loans. As a result, students are virtually locked into their debt, offering them little to no ability to refinance it. Solutions to debt problems like consolidation are available to students but that process doesn’t involve shopping for a better deal from competing lenders like it does in other debt areas. Therefore, interest rates often remain high and the loans remain with the original lender (Vanegeren). As Kayla Webley expl...
People with various degrees are finding it harder to get jobs where they would like to work. Even the increased rate of layoffs for the Tech industry, which usually include packages for an estimated amount of time off, has risen as well. There are programs that assist these situations such as welfare. “The Welfare Act of 1996 was designed to move people from welfare to jobs. According to a letter to the Chicago Tribune, once they got jobs, they lost public assistance,” said Arloa Sutter, executive director of Breakthrough Urban Ministries. She has firsthand knowledge about the struggle of homelessness because she runs two Chicago homeless shelters. Then, when they lose the jobs they once had, they find it difficult to qualify for the assistance they need again under the new regulations that have been put in place. People who are considered the “lower-class” are not the people to be worried about, even though they may seem to be more prone to poverty in their lives. These individuals still have the availability of all the services and programs which allow them to get help. The “middle-class” people are expected to be closer to poverty because they are said to make too much money. The amount that is required for financial aid in college is below $10,000 annually, but by then the person is already expected to be homeless and in debt on that salary. The Temporary Assistance for Needy Families
Hospital bills are very expensive and for the people that don’t have insurance will be stuck with a huge bill that they more than likely can’t pay and will be put out the hospital as soon as the doctors see fit. They won’t just be able to lay around in a hospital room.
The lack of knowledge plays a big part in the debt young people are getting themselves into. Credit cards are often offered to young adults as soon as they get out of high school. Many take advantage of having a credit card without even thinking about the responsibilities that come with it, instead they think about the things they will be able to buy. In “Generation Debt” the author Tamara Draut says that young people are getting into debt younger than ever before. Two of the reasons that are more costly on young students that hit hard on the budget are car repairs, and travel for students who have families and friends in other states (231). From my experience I know first-hand what it was like to be offered credit cards right out of high school, and I didn’t hesitate to get any of them. I st...
...gency (CCMA) (2012), the main reasons people fail to pay a debt were poor financial planning (25%), high medical expenses (22%), business failures or slowdowns (15%), loss of control on the usage of credit cards (13%), and loss of jobs or retrenchments (10%). Therefore, Lea, Webley and Walker (1995) found that debt with economic, social and psychology factor are closely related.
Mortgages, car loans, student loans, and having children, are all situations that can drive families to the overwhelming doom of debt. Debt is mostly overlooked for the simple reason that it may be considered normal. Certain types of debt like car and mortgage payments are almost expected. Debt is sometimes very difficult to evade, especially if money is not managed sensibly. Many families accumulate debt due to overspending, medical bills, and unemployment.
Cause and Effects of Credit Card Debt The false advertisements and strong influence of credit card companies on the public tends to be the main cause of credit card debt. Dave Ramsey has once said, “You do not build wealth with credit card rewards and airline miles. You cannot beat the credit card companies at their own game.” This quote from Dave Ramsey shows exactly what credit card companies really bring to their customers and that happens to be debt.
Unfortunately, there are many Americans out of work in today’s current declining economy. Unemployment can be defined as a person who is out of work involuntary, not by choice. These people are looking jobs and available to start work. Being unemployed can be disheartening and deciding what the next step is can be challenging. Underemployed can be described as being inadequately employed, such as a low-paying job that requires fewer skills than one possess. (Daly, Hobijn, and Kwok 2015) Making ends meet can be difficult for one who has been affected by this economy over the past few years. America still has a high unemployment rate since the decline of the current job market. And many Americans are struggling to establish the skills needed for employment, or the underemployed are force to lower they skill to make a profit. America’s economic status has force the underemployed and unemployed to make ends meet with the current jobs available. And last but not least some have also utilized these difficult times to venture into new discoveries to make life hassle free. So, we wonder is Americans giving up in today’s economy or do they settle for lower end job to establish a steady income to make ends.
Today, the possibility of loosing your job looms on the horizon for many of us. Up until a few months ago I was among the millions of people that is unemployed. Dealing with the loss of job is very similar to the emotions one feels when they experience loss through a divorce or death of a loved one. Unemployment carries an array of emotions ranging from stress, fear, anxiety, and depression. Unemployment contributes to low self-esteem and to family instability, decreased family relations, and in some cases family violence. Lessons can emerge from those who cope well with unemployment, but the immediate goal is to survive emotionally and financially until you have a clear direction for you and your family. In my research paper I will explore not just the individual directly, but the economical and psychological affects unemployment have on the family as a whole.