Navigation Links
American Consumer Credit Counseling Reveals the Hidden Reasons Why Consumers File for Bankruptcy
Date:4/9/2013

(PRWEB) April 09, 2013

Most people think of bankruptcy as an avoidable problem that results from lavish spending habits, but that isn’t usually the case. The most common cause of bankruptcy is medical bills, which account for almost half (42 percent) of all filings and which almost always result from crises that are beyond a person’s control according to a study conducted by ClearBankruptcy.com.

Nor is it the case that bankruptcy affects only the uninsured. More than three quarters (78 percent) of people who file for bankruptcy because of medical bills have health insurance, according to a 2009 Harvard University study. In addition, medical-related bankruptcies skyrocketed in the last decade, increasing by nearly 50 percent from 2001 to 2007.

“There’s no reason that seeking treatment in a hospital should lead to out-of-control debt, but that’s the unfortunate reality for millions of Americans every year,” said Steve Trumble, president and CEO of American Consumer Credit Counseling. “It’s very difficult to save up to pay medical bills, because you usually have no warning before an illness or an injury hits. And the cost of care is simply too high for many people to manage.”

After medical bills, the most common cause of bankruptcy is unemployment, which accounts for 22 percent of all filings.

“Like medical emergencies, unemployment often strikes without warning, making it impossible for consumers to prepare for the impending financial hardship,” Trumble says.

According to a study conducted by ClearBankruptcy.com, the most common causes after unemployment are credit card bills (15 percent) and divorce (8 percent). Unexpected disasters (7 percent) rounds out the top five.

“Other than credit card debt, most of these events are beyond a person’s ability to control,” Trumble said. “Very few people declare bankruptcy because they splurge on cars or luxury vacations. It’s usually because they’ve hit an unexpected rough patch and don’t have enough savings to see their way through it.”

The kinds of crises that lead to bankruptcy can strike anyone, regardless of income or education level. According to a survey conducted by ACCC, more than half (53 percent) of the 1,985 participants who filed for bankruptcy had completed at least three years of college. Fourteen percent of those surveyed had a graduate degree. Another survey by ACCC indicates that of the 2,857 people who filed for bankruptcy, more have a higher annual salary of $60,000 (25 percent) than make $20,000 or less (20 percent).

“Long-term hospital stays can run tens of thousands of dollars, so having a high income doesn’t necessarily protect you from bankruptcy when a major crisis like a medical emergency suddenly strikes,” Trumble said. “The best way to protect yourself is to be prepared for anything. Work out a plan to start saving money now so that, in the future, you’ll be better equipped to weather a financial storm if a disaster occurs.”

American Consumer Credit Counseling’s certified and experienced counselors offer a variety of financial education, counseling and debt management services to help consumers achieve long-term financial health and stability.

ACCC is a 501(c)3 organization, that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:

     • For credit counseling, call 800-769-3571
     • For bankruptcy counseling. call 866-826-6924
     • For housing counseling, call 866-826-7180
     • For more information on financial education workshops in New England, call 800-769-3571 x708
     • Or visit us online at ConsumerCredit.com

About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a non-profit 501(c)(3) organization dedicated to empowering consumers to achieve financial health through education, counseling, and debt management. ACCC provides individuals with practical solutions for solving financial problems and recognizes that consumers’ financial difficulties are often not the result of poor spending habits, but more frequently from extenuating circumstances beyond their control. As one of the nation’s leading providers of financial education and credit counseling services, ACCC works with consumers to help them with the best plan of action to reduce their debt and regain financial stability. ACCC is accredited by the Better Business Bureau and holds an A+ rating. It is also a member of the Association of Independent Consumer Credit Counseling Agencies. For more information or to access free financial education resources log on to ConsumerCredit.com or visit TalkingCentsBlog.com.

Read the full story at http://www.prweb.com/releases/2013/4/prweb10590588.htm.


'/>"/>
Source: PRWeb
Copyright©2012 Vocus, Inc.
All rights reserved

Related medicine news :

1. Premier Provider of Hearing Aids in Santa Monica CA, American Hearing & Balance, Announces New Hearing Aid Comparison Chart
2. Many Americans Skipping Meds to Save Money, CDC Says
3. Top Provider of Hearing Aids in Marina del Rey CA, American Hearing & Balance, Now Offers New Balance Disorder Treatment
4. American Cancer Society awards new research and training grants
5. Special American Chemical Society live broadcasts on cooking, weight loss and more
6. Energy and food are the focus of the American Chemical Society meeting in the Big Easy
7. bioMérieux to Feature Sepsis Solutions at New York Meeting of the American Society of Microbiology
8. Nearly 30 Percent of Americans Have High Blood Pressure: CDC
9. Columbia experts at American Assoc. for Cancer Research 2013 Annual Meeting
10. The American Healthcare Documentation Professionals Group Launches Industry's First Complimentary Online HIPAA Training and Certification Program
11. Only 5% of Americans Getting 8 Hours of Sleep
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/24/2016)... ... June 24, 2016 , ... ... Scientific Sessions in Dallas that it will receive two significant new grants to ... came as PHA marked its 25th anniversary by recognizing patients, medical professionals and ...
(Date:6/24/2016)... (PRWEB) , ... June 24, 2016 , ... ... now offering micro-osteoperforation for accelerated orthodontic treatment. Dr. Cheng has extensive experience with ... Damon brackets , AcceleDent, and accelerated osteogenic orthodontics. , Micro-osteoperforation is a ...
(Date:6/24/2016)... ... 2016 , ... Topical BioMedics, Inc, makers of Topricin and MyPainAway Pain Relief Products, join The ... raise to $12 an hour by 2020 and then adjusting it yearly to increase at ... the minimum wage, assure the wage floor does not erode again, and make future increases ...
(Date:6/24/2016)... ... June 24, 2016 , ... EB Medicine presented its first-ever ... Medicine conference in Ponte Vedra Beach, FL. The awards honor the outstanding work ... Practice and Pediatric Emergency Medicine Practice. , “With this award, we recognize ...
(Date:6/24/2016)... , ... June 24, 2016 , ... ... The Grove Investment Group (TGIG), has initiated cultivation and processing operations at its ... Vegas and Pahrump, Nevada. , Puradigm is the manufacturer of a complete system ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... 2016 The Academy of Managed Care Pharmacy ... that would allow biopharmaceutical companies to more easily share ... formulary and coverage decisions, a move that addresses the ... The recommendations address restrictions in the sharing ... drug label, a prohibition that hinders decision makers from ...
(Date:6/24/2016)... , June 24, 2016 ... Market by Type (Standard Pen Needles, Safety Pen Needles), ... (Insulin, GLP-1, Growth Hormone), Mode of Purchase (Retail, Non-Retail) ... MarketsandMarkets, This report studies the market for the forecast ... to reach USD 2.81 Billion by 2021 from USD ...
(Date:6/23/2016)... 2016  MedSource announced today that it has ... solution of choice.  This latest decision demonstrates MedSource,s ... their clients by offering a state-of-the-art electronic data ... nowEDC as the EDC platform of choice in ... "nowEDC has long been a preferred EDC platform ...
Breaking Medicine Technology: