Not all debt will turn out to be your fault – despite the fact that many people see those who are struggling to get by as victims of their own actions. Given that so few families are prepared for a financial disaster, it’s not much of a surprise that when the proverbial hits the fan, the consequences can be devastating.
In this brief guide, we’re going to go through a few of the situations where it is clear that debt is incurred by accident – and how to protect yourself from, or repair, the damage. Let’s get started with the basics of accidental debt.
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Debt by accident
There are many ways you can fall onto hard times, and it can happen in an instant. Maybe you suffer from a serious injury or get hit by some maniac in a car. Perhaps you get made redundant or are fired by a boss that has never taken a shine to you. Or, maybe you have been struggling to get by on a low wage, and inflation comes into play. What costs you $150 in food shopping one week might end up costing you over $200 the next – putting your finances in great jeopardy. The simple truth is that we are all at risk of losing a significant part of our income at a moment’s notice, and it’s important to have some protections in place.
Insurance
So, the first step to take is to make sure you have proper insurance cover. Of course, this can be tricky, because you never know what might happen, and you can’t possibly predict when a grave accident or financial emergency will occur. However, you can play the odds.
Your health insurance, for example, needs to give you enough cover in the case of a nasty accident – otherwise, you will be facing enormous medical fees. Maybe you could get some unemployment insurance, or self-employed insurance to make sure that you are covered in the event of an illness or periods where you can’t work. Think carefully and do your research of insurance plans to ensure you are getting the best deal – for the best cover.
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Attorneys
Apparently, if an accident that causes you harm isn’t your fault – from a car crash or a medical malpractice incident, for example – you deserve compensation. But, as Hastings Law Firm point out, it can be tough to actually get what you deserve without the help of an aggressive and experienced attorney. Finding one could be the difference between a negligible payment and a comfortable rest of your life.
Education
Of course, all these accidental debt issues could be significantly reduced with the right financial knowledge. Sadly, however, this kind of stuff is rarely taught in schools – which is why we started this blog. It’s no real surprise that so many people get caught out with accidental debt when you bear this in mind and lack the knowledge to build up emergency funds and take a right financial precautions.
As you can see, anyone can get in debt by sheer accident – the big question is, do you have the knowledge and resources to survive if it happens to you?
