Anyone Can be Affected by Financial Problems

Regardless of your situation or profession, you can’t anticipate unforeseen circumstances that can have a more or less serious impact on your finances. Here are a few examples.

• An illness

  From one day to the next, you could be diagnosed with a serious illness or chronic disease. Even if you have coverage under a healthcare plan, you’ll have to pay for certain medications, devices and treatments. People with diabetes, for example, are faced with out-of-pocket costs for years or even decades.

  Being in poor health can also prevent you from working in the long- or short-term and lead to a loss of income. If you don’t have either a financial cushion or disability income insurance, your finances could take a big hit.

• Losing your job

  Job loss or being unemployed for an extended period can significantly affect your budget and day-to-day expenses. As a result, your bills and debts can accumulate quickly.

  And on top of that, the pressure to find a new job while paying ongoing expenses can cause a lot of stress.

• An unexpected event

  At some stage, we all face unexpected circumstances such as having to deal with car troubles, replacing an appliance and other urgent repairs. Without an emergency fund, these unforeseen expenses can lead to an unfortunate financial situation.

• Separation or divorce

  A separation or divorce can have a significant financial impact. In addition to legal fees or mediation costs, you’ll find yourself in a situation where you’re paying for everything by yourself. And if you have children, in addition to potentially paying alimony to your ex-partner, you’ll have to buy furniture, toys and clothing… and find housing that can accommodate the entire family

• Changes in the economic context

  As we’ve seen over the past few years, the rising cost of living and higher interest rates can have a significant impact on individual and household budgets. Both your day-to-day expenses and mortgage payments are higher. As a result, you can quickly get into debt.

• A poor investment choice

  Scams are increasingly common, in the cryptocurrency sector in particular. Unfortunately, many individuals who believed they were investing their money wisely were swindled.

  As you can see, forget your preconceptions, because anyone can experience financial difficulties. They don’t just affect people who didn’t manage their money wisely or were careless. Financial difficulties can also arise in any sector. Every day, our Licensed Insolvency Trustees meet people from all kinds of industries.