The figures on bankruptcy are troubling in America. The portion of the population unable to pay off their debts has been rising significantly in the past few years, and Congress recently dealt with the problem with laws making it harder for them to apply for this privilege.
Below are 6 harmful lifestyle choices you should do away with to avoid going bankrupt:
1. Poor and excessive use of credit
Some people just can’t manage their expenditure. The borrowers would not be able to make the minimum payment of each form of debt using card bills, installment debt, car as well as other loans. Where the borrower cannot access friendly or family funds or receive a debt-solidarity loan, bankruptcy is typically an unavoidable choice. Statistics show that for many reasons most debt restructuring schemes fail, and typically most participants just postpone the submission of bankruptcy. Although home equity loans may often be a good workaround, when drained, irresponsible borrowers can face forfeiture on their homes if they cannot make this payment.
2. Excessive intake of alcohol
It could be costly to drink. This is clear, but other, subtler links between drinking and debt will surface first. Excessive drinks are often an indication that there are issues that a person may try to tackle by consuming alcohol, but they can be problems themselves. Alcohol can be addictive, make sure to drink alcohol responsibly to avoid incurring debts to satisfy your addiction.
3. Intake of narcotic drugs
Some individuals’ underlying cause of bankruptcy is because of their drug addiction. Drug addiction can lead to a series of years or months of non-employment, by the time you will try to resuscitate, you will be having a lot of debts to pay off. Narcotic drugs are extremely addictive and dangerous to our health. Avoiding drugs will significantly help you build your income and improve your lifestyle as a whole.
Clubbing can be fun and entertaining. But most clubs have outrageous prices. If you are a low-income earner, you shouldn’t be going clubbing just yet. When you consistently club, you will be on the journey to filing for bankruptcy.
Betting can be lucrative, but at the same time dangerous to your financial position. Betting is a double-edged sword that can poke you with either side anytime. Most individuals who are involved in gambling always have the urge of making quick and easy money. Betting consistently on the probability of the outcomes of events can make you bankrupt. Betting cannot be a hobby rather in most cases an addiction.
Tobacco will influence the finances of your family. Most smokers claim they will spend more on important things, such as nutrition and clothes, or a new fridge, than on cigarettes every day. Smoking families are more likely to find it difficult to pay for food for their relatives.
A healthy lifestyle affects your general performance in different aspects of your life. Build yourself and avoid a harmful and extravagant lifestyle that will lead you to bankruptcy.