What is the #1 Top Reason People file Bankruptcy in the United States?

There are many reasons why someone would file bankruptcy in the United States. According to an article published in 2020 from Investopedia.com [1], the top 5 reasons people file for bankruptcy is as follows..

#5.) Unexpected Expenses

#4.) Divorce or Separation

#3.) Poor or Excess Use of Credit Cards

#2.) Job Loss

#1.) Medical Expenses

​​​A study published in the American Journal of Public Health in 2019 found that 66.5% of bankruptcies in the U.S. were due to medical issues like being unable to pay high bills or due to time lost from work. [1][2]

It is understandable to not spend more money than you have to. But going without health insurance altogether is probably too big of a risk. Even if you’re young and healthy, accidents happen everyday and could happen to anyone. Plus, the past 2 years have shown us that predicting our future health is practically impossible.

Having health insurance can give you peace of mind. Knowing that you are covered, in the event of a catastrophic event, should help keep the mind at ease. Notice that I never said paying a high deductible would be fun. It is normal for a health insurance plan to have a $5,000, even a $10,000 deductible. But remember this, having health insurance is probably the difference between “not having fun” and going bankrupt.

If you have any questions about health insurance, always speak with a licensed professional.

Sources:

[1] https://www.investopedia.com/financial-edge/0310/top-5-reasons-people-go-bankrupt.aspx

[2]https://ajph.aphapublications.org/doi/full/10.2105/AJPH.2018.304901?journalCode=ajph