Perhaps you had been working for the same company for 10 or more years. You and your spouse may have even managed to set aside a little nest egg, dreaming of retirement one day or to take a beach vacation with your kids.
If you’re one of many workers in Texas who showed up at the office only to learn that your boss decided, without warning, to make your position obsolete or to cut overhead costs by letting a few people go, you may have felt shocked, dismayed, betrayed and worried all at the same time. If that situation led to substantial credit card debt and financial crisis in your home, you are definitely not alone in your struggle. The good news is that there are support options available.
Unemployment plagues many households
Even if your spouse was still gainfully employed after you lost your job, your current cost of living may require two full incomes. One person losing a job, especially unexpectedly, can throw finances completely off kilter. You may be able to obtain debt relief if you can’t restore financial stability by filing for bankruptcy, which often gets a bad rap but can be highly useful tool.
Medical care is outrageously expensive
If one of your kids suffered a sports injury, needed dental treatment, or your or your spouse underwent some type of surgical procedure, it can take months, even years, to financially recover from such events. Medical bills quickly pile up and if loss of income intersects such circumstances, it can be nearly impossible to keep your head above water.
Using credit as cash is never a good idea but sometimes can’t be helped
If you fall into a bad habit of using your credit card for short-term expenses but don’t pay off your balance every month, a minor financial struggle can snowball into a serious financial crisis in no time. Extenuating circumstances may necessitate using your credit card more than you’d like; however, if you consistently spend more than you make and use credit as cash, you are at great risk for money problems.
What you can do
Staying home more often, spending less and taking time to write a budget are all good ideas when it comes to overcoming financial trouble. You may also want to learn more about the various types of bankruptcy to determine if this option might be a best course of action in your particular situation. You can take comfort in knowing that most financial problems are not permanent and that there are support systems in place to help you find solutions.