Top 5 Reasons People Need Debt Relief

At Franklin Debt Relief, we're very familiar with the different circumstances that cause someone to need our debt reduction services, and in fact, much of our debt settlement and negotiation program's success is predicated upon exactly this---understanding our clients' financial hardships and communicating this to their creditors. The following is a list of the top 5 reasons people seek our debt relief program.

1. Medical issues

According to a Harvard study conducted in 2005, medical issues attributed to almost 50% of all bankruptcy filings in a sample of cases from 2001. Even more surprisingly, more than 3 quarters were insured at the time of the bankruptcy illness. According to the lead author of the study, Dr. David Himmelstein, "Unless you're Bill Gates you're just one serious illness away from bankruptcy. Most of the medically bankrupt were average Americans who happened to get sick."

2. Loss of employment

Another obvious cause for needing debt relief, particularly for families with no savings or only one breadwinner, loss of employment can have catastrophic financial consequences. The easiest way to prepare for this is to set aside money each month in an emergency fund or seek more stable employment opportunities, which is obviously easier said than done.

3. Failed Business Venture

One of the most underestimated causes of needing debt relief, the self-employed are at a far greater risk than those who have stable income. And the problem isn’t just about not making enough money---many start-up businesses lack the capital necessary to get off the ground, so entrepreneurs overextend themselves with credit cards to fund their businesses.

4. Divorce

Divorce is another major reason why consumers seek our debt reduction services. Many times a court will order one spouse to pay back a larger portion of debt acquired during a marriage that they can afford.

5. Overspending

Not all debt problems are caused by circumstances beyond our control. Far too many Americans are finding themselves in need of debt relief because they failed to use credit responsibly. By budgeting and resisting the urge to purchase things we can’t afford, we all will be far healthier financially.

Interested in learning about our debt reduction company? Please feel free to call (877) 274-1260 or fill out a form and we’ll contact you as soon as possible.