What is Financial Distress?
Financial distress refers to the inability of people and companies to meet their financial obligations.
People seem to be more and more concerned about money these days. In fact, a survey from Bankrate.com said that 50% of people making between $25,000 and $75,000 tend to “worry a lot” about their finances. With bankruptcies and foreclosures rising at double-digit rates, it’s no wonder many are in financial distress .
But what are the top reasons that cause financial distress? According to information gathered from many other credit counseling agencies across the country, the top five causes are:
Top 5 Causes of Financial Distress
The best advice for responding to your needs is: Don’t ignore them or put it off. This only compounds the problem and makes it harder to address later. Pick one thing that you can do and get started. Today. On lunch break. Or as soon as you clock out at work.
Our list of steps is adapted from a great source that you can check out here. They are looking at financial distress from the corporate perspective, but the principles are just as true when the organization you’re looking to keep afloat is your household. Here’s realistic steps you can take:
By understanding the main causes of financial distress, you can start to make plans to address them. Connect with one of our Financial Specialists for free financial analysis, financial guidance, and a custom debt management plan.
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