This video outlines some of the key behaviors that can cause households to go into debt. First, the narrator distinguishes between good debt and bad debt: the former helps build assets and allows the nest egg to grow over time, while the latter involves purchasing goods on credit than decrease in value over time.
Behaviors that can cause someone to go into debt include consumer spending, loss of work, not saving enough money, and suffering a serious illness. Households can aim to prevent these causes by saving at least 10 percent of their take-home pay, purchasing insurance, and engaging in estate planning in order to ensure that their family has money to keep going in the event of a death.
If you find yourself unable to escape a rabbit hole of debt, bankruptcy may be the perfect solution to your financial woes. Residents of the Aurora, Schaumburg, and Chicago areas in need of legal advice about this sensitive topic should consult the team at Cutler & Associates to see if filing for a discharge is the best debt solution option.