The Best Way to Avoid Bankruptcy: Be Healthy

There's not a single person on this planet that wouldn't enjoy the freedom knowing that they are wholly and completely debt free, but are too often Murphy will move in our spare bedroom and throw our financial plans off course by giving us an unexpected expense such as an automobile break down, an unexpected tax bill, or a surprise medical expense. A combination of these problems often forces people to file bankruptcy, which is devastating both emotionally and financially. One of the best ways to avoid the nightmare of bankruptcy is to simply be healthy.

One of the largest causes of bankruptcy in the United States is that people have an unexpected medical issue, their insurance does not cover it, or cover enough of it, and then they have to get very expensive treatments that they do not have the money for. This puts them in all sorts of debt. Harvard University did a study in coordination with some other organizations and found that 46% of bankruptcies were caused by health and medical bills. Another study found that number was close to 20%. We might not know the exact number, but it is certainly the second leading cause of bankruptcy, right after losing one's job.

If there's something that one could do to avoid one of the major causes of bankruptcy, chances are a lot of people would be interested in doing it! Sometimes we cannot stop a job loss because it is simply out side of our control, but there are things we can do in order to prevent a medical bankruptcy.

You will definitely want to make sure that your health insurance is in order. Get it if at all possible. This will take care of a substantial majority of your major medical expenses which could potentially cause bankruptcy, but that is not true in all cases. Sometimes people think they are covered by insurance when in reality, they are not. Before visiting a doctor, make sure your insurance coverage is in effect, especially if you have changed jobs recently. Make sure to check if you need a referral from a regular doctor before visiting a specialist, this is a rather expensive mistake to make.

There's much more to it than just having your insurance in order. You also need to live right. We need to eat healthier, exercise more, and quit watching so much TV! Simple lifestyle changes will go along way in keeping you out of the hospital and the doctor's office.