According to a report from National Public Radio (NPR), almost 40% of households in America have experienced serious financial difficulties in the past few months. It’s easy to fall into debt these days, especially with rising living costs and stagnating wages. However, debt can seriously impact your family, including children. Here’s how to protect your family from household debt.
Protect your Home
A 2016 study found that when parents have unsecured debt, their children are significantly more likely to have behavior problems. Problem behaviors assessed included lying, bullying, cheating, sudden mood changes, and impulsive actions. These behaviors are likely to be due to fear and concerns.
It’s vital your children feel secure during this time, so you need to do all you can to keep a roof over their heads. Speak to your lender about taking a mortgage holiday while you get your finances in order.
It’s also worth refinancing and seeing if you can find a better deal with lower rates. Another option is to sell your home and downsize it to smaller and more affordable property.
Get a Lawyer
28% of Americans in debt say that it causes them stress. Almost 20% say that their debt has resulted in collection agencies contacting them. When your finances are in trouble, you don’t want to make a wrong move. A bankruptcy attorney can advise on the best course of action when you’ve got people knocking on your door wanting money.
An experienced attorney will give you debt relief information so you can work towards getting rid of your debt once for all. This way, your family will be fully protected as soon as any financial problems arise.
Health Insurance for your Loved Ones
The average annual cost of health insurance for a family is $21,342. You must protect the medical needs of your family, even when you’re in financial hardship.
Singlecare reports that a one-day hospital stay costs $5,220, so medical treatment quickly becomes unaffordable when one or more of your family needs medical attention. Medicaid is one way to make your healthcare bills more affordable, so long as you earn up to 138% of the federal poverty level.
Feeding your Family
11% of households with children say their family doesn’t always have enough to eat, according to the Center on Budget And Policy Priorities (CBPP). A lack of food can result in malnutrition, low energy levels, fatigue, and impaired growth in children.
More than anything, it’s essential to ensure your children are eating well. Look into the National School Lunch Program, as this could help feed your children.
If your household income is 130% below the poverty level, your child will eat for free. Children from households with incomes between 130% and 185% of the poverty line will get a cut-price lunch.
All family members will be affected when you experience financial difficulties. As a stepdad, you need to work hard to protect your children from the difficulties that debt can bring. Hopefully, these tips will help you get through this challenging time.
