JKB Financial, Inc. Discusses Some of the Unavoidable Causes of Debt

Have you ever wondered how much debt Americans collectively hold? Don’t bother taking out your calculator— the figure has too many zeroes in it. According to the Federal Reserve of New York, U.S. citizens collectively owe about $11.23 trillion, more than the national budget of some developing countries.

Granted, many people owe money due to poor budget management, such as living beyond their means or being swipe happy with their credit cards. Having said that, many also find themselves in debt because of completely unexpected or unavoidable reasons. JKB Financial, Inc. discusses three of the most common causes:

Unemployment

If a company is struggling financially, employees may be laid off to help the bottom line. Unfortunately, utility bills, mortgage payments, and other living expenses won’t take a hiatus while you’re job hunting, and extended unemployment often buries people in debt.

Sickness

Even if you have a stable job and a healthy nest egg, illnesses may drain your wealth and land you in debt. This is particularly true if your health insurance does not cover your medical conditions, which generally means you have to pay for hospital bills out of pocket.

Student Loans

In today’s competitive job market, a diploma from a prestigious university may be your only ticket towards employment. However, as many new graduates know, a well-paying job straight out of college is a rarity; many remain unemployed or underemployed for years, causing them to fall further and further behind on student loan payments.

If your life has been overtaken by debt, you can get help from companies like American Debt Solutions, which JKB Financial, Inc. operates. They’ll refer you to debt processing specialists who will renegotiate your balance to decrease it, and create an easy-to-follow debt repayment program. After all, a debt-free life is the best life there is.