How many Americans can honestly say they have enough money in the bank to cover a big emergency? According to a recent report, the answer is not many. In fact, few have the money to cover the costs of a minor emergency. Michigan residents who find themselves struggling financially can turn to a bankruptcy law attorney for assistance.
It is believed that approximately half of Americans do not even have enough cash on hand to cover an unexpected $400 expense -- such as a car repair or a medical bill. Unfortunately, these things happen to just about everyone and always at the worst time possible. So what do they do when they cannot come up with the money? They look for quick cash sources -- such as credit cards or payday loans.
While these solutions may work for minor emergencies, they certainly are not good solutions when one takes a bigger financial hit -- like the loss of employment. According to the Federal Reserve, as it currently stands due to wage stagnation and increased living costs, the average American family -- making roughly $50,000 a year -- only has enough money saved to make it about a week before their bank accounts are empty. Those who are in the next income bracket up may have enough saved to survive for five months. This is a scary thought.
When emergencies strike and debt gets out of control, there may be a way to rein it back in. A bankruptcy law attorney can review the particulars of one's financial situation and provide information about all available options. For some Michigan residents, bankruptcy may be their best bet for achieving economic relief.
Source: msn.com, "Why Half of Americans Can't Come Up With $400 in an Emergency", Ben Taylor, Oct. 1, 2017