What are Money Problems?

Money Problems

Financial Difficulties are part of modern life, especially in these times of recession. It is said that the average British family owes more than £10,000. Bankruptcy and debt are escalating problems. Money problems can lead to health problems such as anxiety, depression or anger.

There are many causes of money problems apart from the obvious one of poverty. Those below are some of the commonest.

Inadequate Savings

Inadequate savings when there is little or no financial cushion to help in times of difficulty such as job loss, divorce or bereavement. It is generally regarded that savings of 3 to 6 months of living costs is sensible.

Housing Debt

In the current financial climate with falling real estate values especially in The United States and Great Britain there is a major problem of negative equity in the family home, overextended mortgage repayments and default leading to eviction. This leads to an increase in homeless and street living.

Inadequate Insurance

inadequate life and disability insurance is a common problem. It is regarded as an unnecessary expense for many people, but is vital to cover for the unexpected accident or illness.

Lack of a Retirement Plan

Many people have no plans for retirement, relying on the state to provide a reasonable income when they stop working. However we increasingly hear about the shortfall in retirement income with the current recession. The income drop can be a big shock unless you are prepared - (believe me, been there. ed). A problem of old age.

Incomplete Use of Available Tax Deductions

the available tax deductions will vary from country to country and from goverment to government but these can make a big difference to your income and should be used as much as they will allow.

Overuse of Credit

Overuse of credit cards and the pushing of their limits is also on the increase and is one of the major factors in financial problems with the high rates of interest charged. In 2011 adverts have appeared on British TV offering loans at more than 2800% interest per annum.

This page is to help those who need advice and constructive ideas about resolving that problem.

Also helpful may be addictions, stress.