BUSN380 Week 3 Threaded Discussion â€“ Hazardous to Your Health & Credit Card Balances (1)
According to Bloomberg Businessweek, the rise in bankruptcy filings is largely attributable to the combination of rising consumer debt and low savings rates. As consumers spend more and save less, the potential for crippling debt rises significantly. Moreover, if consumers do start spending less, this may have a negative impact on investments in business, another key factor in economic recovery. Poor consumer spending habits are further exacerbated by the shaky employment situation.
In one financial blog, http://www.thedigeratilife.com/blog/index.php/2007/03/10/3-top-reasons-why-people-go-bankrupt/ , they cite ill or failing health as being responsible for more than half of bankruptcies filed nation-wide. Contributors to the website argue that you may have all the resources you thought you needed to build your financial buffers, but when unexpected disasters befall you one after another, those resources dwindle and vanish. Medical and health problems cause a legion of other issues such as unemployment and large medical bills that can easily cripple your bank account.