Financial problems can crop up at any time. The fact is that consumers are constantly at risk of running into financial problems due to sudden bad luck or unemployment. Financial problems can send consumers into immediate debt or even financially ruin them.
The consumers who are the forefront of financial problems are those who find themselves over-indebted. This means that their debts have begun to swallow their income to the point where they cannot meet all their monthly demands from creditors. This can have an adverse effect on their quality of life, as consumers are forced to live below the breadline and dodge debt collectors as they struggle to keep their heads above water.
Secondly consumers are also at risk of financial problems due to unscrupulous and reckless credit practices. Sometimes creditors are reckless in giving credit and ruthless in recovering it. This places incredible stress on a consumer who may have made impulse credit purchases without paying close attention to fine print.
There are those consumers who are also at risk because they may have not saved up enough to cover unexpected expenses. An unexpected expense is one of the biggest risks that consumers face, as sudden medical costs, a broken car, or a home emergency may drain all savings and force a consumer to live on credit.
The fact is that all consumers with financial portfolios are at risk of running into serious financial problems – it is therefore pertinent that they save and plan for this and know when to ask for help with financial problems.
Article written by: Andrea van Tonder 07-2013