Amid the crisis, more people declares bankrupt. It may occur because they lose their jobs. They cannot manage the money well. There are some reasons why people bankrupt. Here are the reasons why people fill for bankruptcy:
1. Use credit card uncontrolled
Some people cannot control to use credit card even they loss the jobs. They think they can pay it later.
2. Living larger than necessary
Some people do not realize the salary. They spend more than earn. For example, a clerk buy jaguar car whereas his salary is only $2,000 a month. The clerk supposedly buy used car. They have to thrift their money for other spending. For your information, Warren Buffet house is small and he drive simple car. We should live like him.
3. The spending is higher than salary
The product price continue to increase; while, our salary is fixed. We have to remake our budget again. Cut some unnecessary spending.
4. There is no health cost or underestimating health cost.
In United States, this is a number one leading of bankrupt cause. Some people do not save for health cost while it is very expensive.
5. Study at expensive college
Studying at college is very essential. However, some college do not pay back you. We have paid the college but we cannot get a better job.