People in California naturally think about their health when confronted with a cancer diagnosis, but a medical crisis could also trigger financial problems. Ongoing medical bills sometimes coupled with an inability to work could quickly deplete a person's resources. A 2013 study prepared by the Fred Hutchinson Cancer Research Center reported that people with cancer faced a 2.5 greater chance of filing for bankruptcy compared to people without serious medical problems.
According to a survey by Charles Schwab, members of Generation Z in California and elsewhere around the country owe lenders an average of $4,343. That amount increases to $11,663 for those who are between the ages of 21 and 25. In addition to being in debt, roughly half of those who were surveyed had less than $250 in savings. Individuals who are between the ages of 16 and 25 are generally gaining the ability to make financial and other types of decisions for themselves. Therefore, it is important that they understand how to manage their debt.
A study from the Consumer Bankruptcy Project has found that California residents and other Americans who are 65 and older filed for bankruptcy at a higher rate in 2016 compared to 1991. The rate was more than 200 percent higher for people between the ages of 65 and 74 and more than triple for individuals 75 and older. This is partially because there are more Americans in this age range today compared to past decades.
Even if you're someone who loves all things financial and have always kept careful track of your own spending habits, have organized, updated financial records and simply love to create budgets and put them into action, the cost of living in various California regions is so high that even those who earn high incomes and typically keep their finances in check can run into serious trouble. You may, in fact, be surprised to learn how quickly your financial train can be thrown off track.
Some California residents who are in debt make mistakes that cause their financial situations to go from bad to worse. For instance, an individual may spend money on food or other nonessential items to forget about their plight. However, it is important that an individual starts on a path to getting out of debt immediately. This means not spending money on frivolous items.
Some Californians who own businesses might worry that their prior bankruptcy cases may keep them from being able to get approved for business loans. While it might be more difficult to qualify after bankruptcy, it is possible for business owners to find loans that they might be able to obtain.