As much as you plan your future, there are always surprises and unexpected expenses or challenges. Most Americans create some type of savings plan to pay for major expenses, whether that means college, a new car or a dream vacation.
Those are some of life's expenses that are more positive (if there is such a thing). Few have a medical savings account. Americans spend more per capita on health care than any other country, almost ten times more than the global average, according to the World Health Organization. There are many reasons for the high costs, but the point is that it takes a big toll on your budget. An emergency trip to the hospital can throw your entire budget out of whack. A chronic condition will have even greater impact.
Most expensive common ailments
A recent study of medical costs determined that the three most expensive conditions are diabetes, heart disease and lower back or neck pain. All three are prevalent conditions in society.
It's not just the cost that's concerning, but that medical expenses continue to rise faster than inflation. Medical costs are already consuming Americans' budgets and they're still going up.
A diagnosis means serious changes to health and lifestyle. While it's expected that there will be accompanying costs, they are unfortunately burdensome and overbearing for many. As treatment continues, the debt mounts.
When is bankruptcy right for you?
There is a stigma that bankruptcy means you've somehow failed, which is inaccurate. Bankruptcy is a solution to financial problems. It can wipe or restructure debt that allows life to get back on track and make your day-to-day living expenses manageable again.
Bankruptcy is a common solution for medical expenses or those facing lifestyle changes through no fault of your own. As the study shows, medical debt is a real problem in the United States.
There are different approaches for your debt. Chapter 7 may discharge what you owe, while Chapter 13 can rework payments. If you're considering bankruptcy, an attorney can offer invaluable advice about your options.