Top 5 Causes of a Personal Financial Crisis

Do you think that you are beyond worrying about a personal financial crisis? Is life all rosy and sweet, allowing you to live in a fairy tale reality? If you survived 2020, that is certainly a good start, but the current transition into the new normal is seeing more people than ever before living in times of a personal financial crisis.

There are a great many common misconceptions about payday advance loans and other same day loans both online and off. While we all think it will never happen to us, there are a great many people who wake up one day and discover everything that they have worked and struggled for their entire life is suddenly gone. When financial tragedy strikes, it is also nice to have at least some alternatives.

Why would anybody turn to a payday loan? Sure. Bad things happen to good people, but it is always “the other guy” or “somebody else”. Things like that never happen to people like me. Right?

Wrong.

Bad things happen to good people every day, especially during the global Covid Crisis and in terms of people struggling to survive during social isolation, covid lockdowns, and the transition into “the new normal”.

What are the chances that any of the following things may happen to you? Statistically speaking at least, these are all very real possibilities that may force you to rely on same day payday loans to get you back on your feet financially.

Adjustable-Rate Mortgages drove a great many people into dire financial straits because once those added payments came due, and interest rates began to rise, they could just not keep up with the payment. It should be noted that when used properly, the ARM can be an effective means for purchasing real estate, but it is imperative that the purchaser be aware of what they are getting into, and are financially prepared to deal with the variable mortgage payments.

Many people who could previously not afford their own homes were coerced into purchasing homes with Adjustable-Rate Mortgages which saw routine increases in their mortgage payments. Fortunately, the terms for the ARM have since been modified, and as interest rates continue to decline, these types of mortgages are less common and popular than they used to be.

According to some reports, the Adjustable Rate Mortgages were a prime factor in the Subprime Mortgage Crisis as house prices dropped and mortgage and mortgage interest rates continued to rise resulting in up to 60% of Adjustable Rate Mortgages ending in foreclosure in some States. This droves many people, including some who had previously had excellent credit scores, ending up with bad credit ratings and very few options for surviving a personal financial crisis.

According to the US government, more than 66% of all bankruptcies are due in large part to excessive medical bills. In 2020 more than dollars’ worth of medical debt was forwarded to collection agencies. Unfortunately, none of us get to pick and choose when we get sick, and what diseases we may or may not encounter during our lives.

A simple day of swimming at the lake could result in the ingestion of flesh-eating bacteria that forces us to endure countless medical procedures and their related expenses through no fault of our own. Virtually anything and everything we do is so heavily processed that cancer is now a common occurrence. According to the cancer.gov website, nearly 40% of Americans will develop cancer in some form during the course of their lifetimes.

Each and every case of excessive debt incurred by medical care is in some sense a tragedy, no matter how valuable our lives and the lives of the ones we love may be. Without getting into any political or ideological debates on this site, it still remains clear that people who are experiencing a bankruptcy, especially through no fault of their own, still deserve to have financial resources made available to them. In the case of same day online loans and other access to instant cash, it may very well spell the difference between life and death.

Learning how to create a budget, live within that budget, and to repair your credit are an important part of life in the world today. As has already been demonstrated though, this may not always be enough. Even people who have maintained good credit throughout their lives, and have learned how to save money, and maybe even to supplement their income, may still need same day online loans from time to time.

Far too many people however, still do not know how to properly build or manage their credit rating, and will suffer financially as a result, often in the form of a personal financial crisis. Someone who is young and comparatively inexperienced, who has built up good credit with the help of family and reduced costs of living, may easily over-extend their credit once they get out on their own.

Other people who are not very good with money will tend to waste a substantial amount of money on impulse buys, averaging about $5,400.00 per year – and since that is an average, you can safely assume that at least half the people spend more (or even much more) than that amount each and every year. For many of these people, same day online loans are the best bet for getting through to the end of the month.

Things like this are why people have insurance right? Except for that time you got hit by the drunk driver that did not have any insurance. And all those people that live on the coasts that do not have hurricane insurance. Or those people who live on the flood plains but do not have flood insurance.

Once again, there may be room for a meaningful philosophical discussion on both the reasoning and responsibilities for such scenarios, but cataclysmic losses are definitely a major source for people going through a personal financial crisis and who will still need a way to survive in the meantime.

Both property and casualty insurance and personal health and life insurance are largely optional, and even when required may not seem to merit those added costs for those catastrophic events that seem so unlikely to ever occur. And then the unthinkable happens and far too many of these people will wake up to discover that their whole world has been ripped out from under them and everything they have worked for and built in their lives is gone.

Issues of personal responsibility aside, the fact remains that if you have ever experienced a personal financial crisis for any of these reasons, you know and understand how important it is to have something to reach out for when you need a hand up. Same Day Online Loans and other payday loan options to help them get through dire economic times.

Thanks in no small part to the global covid crisis, the unemployment numbers are at their highest level since the Great Depression back in the days of the dust bowl. More mom and pop and small businesses, including businesses key to the service industry have been forced out of business exceeding similar unemployment levels in these areas even during the great depression. How are people who have lost their business supposed to recover financially? How much bigger can a personal financial crisis be?

Many of these people may have started out with excellent credit scores at the beginning of the Covid pandemic, including personal credit scores, long-term installment loans like mortgages and car loans, and even revolving credit loans, either through credit cards or with business vendors. How many of these people have been arbitrarily forced into collection through government mandates or other restrictions on their ability to make a living?

These are people who have never asked another to give them a fish, or even to teach them to fish, but who have taken the time to learn, made the necessary investments to ensure their success, and ultimately, had their livelihoods effectively stolen from them. For so many of these people who have never been intimately familiar with a personal financial crisis, same day online loans and payday loan advances may be their only hope to survive these tough economic times.