One of the biggest challenges people constantly face revolves around money, making it one of the most common factors that cause stress. Those struggling to keep up with living from paycheck-to-paycheck have higher risks of getting stuck in a cycle of debt, especially when there are circumstances that shakedown your financial stability.
According to the American Psychological Association (APA), there are 72 percent of adults suffering from financial stress due to a plethora of reasons – be it being bogged down by debt, pay rent on time, or the sudden loss of insurance along the way.
If you’re striving to avoid losing control in the future, it helps to know the potential triggers and ways to cope with it so you can regain financial empowerment.
1. Loss Of Job And Insurance
People are constantly struggling to maintain their careers, but the pandemic outbreak spiked the unemployment rate up to a whopping 14.7 percent, resulting in nearly 20 million Americans losing their jobs.
The loss of employment not only cuts off their income, but it involves losing health insurance too, which only adds to the stress, especially in a time where healthcare is crucial. Fortunately, you can get feet back up during these confusing times by filing for unemployment benefits offered by your state’s program.
You can also recover from the loss of your health insurance by checking out the Patient Advocate Foundation website, which offers solutions that can lower your medical expenses based on your financial circumstances.
2. Drowning In Debt
The average American has a household debt reaching $144,100 in 2018, and the six-figure amount continues to rise as the economy is experiencing another recession and slowdown thanks to the COVID-19 outbreak.
Credit card debt is at an all-time high, with more adults falling behind and even more struggling to break the cycle. One of the first steps to recovering from the quicksand-like debt crisis is to put a stop to any additional credit card expenses, while you manage the rest through debt consolidation.
Putting multiple debts into a single, low-interest loan can make it easier to meet your monthly payments, especially since it gives a better overview of your budget.
3. Lack Of Retirement
Many people aim to have a retirement plan, but putting enough savings aside for your future can be difficult when there’s little to spare now. With the latest recession and a higher cost of living, retirement feels less realistic for many Americans.
It’s important to note that seeing as your retirement is a years-long process, even the littlest amount can make a difference in your future. You can easily get a head start by participating in a 401(k) retirement account from your employer, wherein you can save two percent of your income.
The Bottom Line: Coping With Financial Stress
Seeing as staying on top of your finances is challenging, we can help provide up-to-date guides and financial news that can help keep you on track on your financial journey. Check us out at Black Wallet in Miami, Florida, and see what we can do to help you manage your finances.