It is very easy to point fingers at people who have chosen shopping spree as a way of life when it is about consumer debt. However, the real reason behind Americans getting caught in financial trouble and seeking payday loans online is not in any way related to the inability to resist temptation. It is in fact a matter of medical debt.

As per the Kaiser Family Foundation (KFF), there are over a quarter of Americans who struggle to pay their medical bills. This even includes those who have insurance, whether through an employer or independently. As a matter of fact, the No.1 reason of personal bankruptcy filings is medical debt and in 2014, approximately 40% of US adults ran into debt as a result of medical issue.

However, the shocking part is not that Americans have a hard time dealing with medical debt, but it is the extent at which even insured individuals struggle. The New York Times had reported last year that an estimated 20% of Americans under the age of 65 with health insurance had a lot of trouble paying their medical bills. Of those, 42% took up an extra job to cover their expenses and 62% claimed that most or all of their savings were used up to tackle healthcare costs.

Health insurance is not a surefire way to prevent Americans from falling victim to medical debt. But, you can take steps to build an emergency find so that you can safeguard yourself from unanticipated bills.

Emergency fund can offer relief

Not having enough savings to cover the unexpected costs is one of the main reasons why a lot of people get into medical debt. As per the GoBankingRates survey, sixty-nine per cent of Americans have less than $1,000 savings while 34% do not have any money in the bank.

Fortunately, there are things that you can do to have adequate savings. To start with, you can create a budget to track your spending accurately and also find ways to cut corners. Then, you can decrease spending from all categories that are not essential living costs, such as restaurant meals, leisure and even cable.

But, if that does not do the trick, you will have to make more significant changes like, unloading a vehicle, downsizing your living space or working a side job for the generation of extra income.

Bankruptcy creates future problems

It is best to avoid filing for bankruptcy because it is going to stay on your record for ten years. During this time, you will face a lot of difficulty finding an apartment to rent, secure an auto loan or even finding a job. Another thing about bankruptcy is that it takes a lot of money to file for bankruptcy. This is because the bankruptcy codes are quite complicated. You will have to hire a lawyer and also take care of any filing fees that you might incur along the way.

Moreover, there is really no distinction between filing for bankruptcy due to reckless spending or medical debt. Regardless of what it happened, bankruptcy filing is going to remain as a black mark on your record.

It might look tempting to fallback on the option of bankruptcy when your medical bills go out of control, but it is better to save up for a rainy day to help you cover the expenses. You can also closely analyze your health insurance plan and see if it would make sense to opt for a more comprehensive coverage.

Another great way that you can save some money is by not ignoring your health issues in its early stages. This is when health conditions are least expensive and easiest to treat.

Do not overlook the Social Security bonus

Retirees often tend to overlook their $16,122 social security bonus and they fail to include it as a part of their retirement savings. All you have to do is learn the tricks of how to unlock the Social Security benefits. If that also does not work, you always have payday loans online to rely on.

Have you ever wondered what is the value of financial security? Can an amount be actually added to an abstract factor like financial security? In this day and age of people literally loaning themselves money to survive, desperate people, taking cash advance in order to be able to pay bills, financial security does seem worth an awful lot. If you are head of an organization, you might be wondering exactly how much your fiscally protected workers’ worth is to your organization’s bottom line? Is their financial security a factor that improves productivity as much as it improves their life? This abstract question may soon enough have an answer and organizations will be enabled to solve it.

Financial Finesse is an organization dedicated to improving workplace wellness. They are always on the lookout for creating methods that can tackle such abstract concepts, asking questions like, ‘is it worth it’ in order to truly value the importance of certain workplace practices. Their team of analysts and developers said that it has come up a new prognostic return on investment model, a scientific approach that accurately gives descriptions of exactly how much a worker’s economic state is possible to effect both in a good or bad way, their company’s bottom line in important zones such as nonattendance or absenteeism along with other important factors. Absenteeism is absolutely condemned in any organization and it was important to incorporate that factor in. Another crucial factor is salary garnishments – in the event of an employee falling under heavy debt, the court may place an order which forces the borrower’s organization to pay the lender his or her salary for the month. Since this is a court order, the organization is forced to comply without considering factors like the employee’s performance that month or whether or not he or she deserves to be fired for bringing on such problems for the organization. Another chief area Financial Finesse focuses on is the factor of benefits involvement.

That might come tremendously handy as an economic pressure in the office rises, it has a severe effect on an employee’s psychological and bodily comfort. Such stress can also cause major defects to the standard of work they can produce at work. Employers speculating the amount of money it could be costing their businesses, finally have a way of figuring it out.

The Financial Wellness Score has attempted to make this abstract calculation possible for companies to set a standard and calculate the return on investment related to refining workers’ levels of economic well-being. A state of wellness where a worker has minimal or no economic pressure along with savings funds to squash any unforeseen costs and a carefully designed strategy in place to achieve any targets in the future.

The return on investment model delivers businesses of variable scopes a procedure to set program standards, being able to determine the amount of savings that can be made through effective cutting down of costs, rank target worker populations and keep a record of development and actions over a period of time, in order for human resources and welfares teams to set quantifiable program targets and quantify the influence their financial well-being agendas have on the business’s bottom line.

The detailed study and analysis discovered that workers in the anguish and stressed groups affect their companies’ bottom line at an excessively high rate, be in the region of a yearly charge to the company of $198 and $94 for each worker, respectively. Workers with advanced economic well-being levels cost the organization less. In these desperate times where attaining services like cash advance has become many people’s last resort, it is important for organizations to act wisely.