Today's economy isn't what it once was. Gone are the days of a teenager saving enough money to buy a brand new car in one summer, a young college student obtaining a four year degree with zero student loan debt, or a young couple buying their first home under stellar lending terms. While Gen X and Millennials will certainly face more financial turmoil than Baby Boomers, one thing that is becoming clear is that the majority of today's debt problems are largely not the fault of the individual.
Burden To Carry
The costs of health care premiums are up by double digit percentages in just the last decade. Employees are not only experiencing plans with higher deductibles (a cost saving measure for the health insurance organization), but also finding themselves responsible for paying their premiums out of pocket as employers cut health benefits in order to save money. So that average salaried employee once able to support their family is now strapped by a burden of several hundred dollars a month just to cover health care insurance premiums. Not to mention the added burden of medical bills for any costs of treatment not covered by said insurance company. Medical debt is quickly becoming a large source of debt among California bankruptcy filers.
Another source of rising financial obligation pushing more families into budget breakdown is the cost of child care. Many families have two or more children, often with multiple children in preschool settings that require full time care for parents to be able to earn a living. Unfortunately, it isn't uncommon for the entire paycheck of one member of a couple to go solely to budget busters like childcare and healthcare; leaving only the other spouse bringing home income for other essential expenses like food and utilities.
That isn't to say that many of us aren't overspending at times or some of us living outside of our means, but what we should agree on is that those "means" aren't always avoidable. If you are having trouble managing your debt burdens or need help with obtaining a financial strategy that works for your family, contact an Elk Grove bankruptcy attorney to find out what you can do to ease your budget busters.