RAISING A CHILD AND THE ROAD TO BANKRUPTCY

RAISING A CHILD AND THE ROAD TO BANKRUPTCY

            There seems to be a new emphasis on the cost of raising a child in this Country. Rather, how it is becoming impossible to afford to have children. Maybe it’s the Millennials starting to have children and realizing the enormous financial cost or the student loan crisis that is ensnaring many parents who co-signed for their children? Whatever the cause, it is apparent that educating and raising children has become prohibitively expensive. A recent article talked about the average annual cost of raising each child as $13,248.00. Per year!!!

http://www.usatoday.com/story/money/personalfinance/2015/09/27/credit-dotcom-moms-debt/72629890/

            That was the average cost. In fact, many parents feel the need to go further into debt to send children to private schools, fund extra-curricular activities or create a “perfect childhood”. Such was the pressure to provide everything for their children, that 46% of the parents in the article were actually creating debt, such as credit cards and other loans. The article took no real position on the creation of such debt, other than to say it could have long term credit report implications (the article was sponsored by credit.com where you could check your credit reports to see the debt that you created).

            The creation of such debt in order to provide for children is more than just a credit reporting issue. It is a conscious choice that most parents will make even if faced with the long term consequences of the debt. That is why the percentage of people who responded and said that they were creating debt is so high. It may be an even higher percentage based on how people will usually respond to a question that may embarrass them (such as whether your deeply in debt).

            If you find yourself in long term debt due to the choice of raising your children as you wish versus what you could really afford, contact our office for solutions. We have experience in guiding couples of all ages and economic status out of financial problems. We offer private and supportive consultations to explain all of your options when faced with long term debt. You can even bring your kids to save on expenses.

            At Mickler & Mickler, we attend Court on a regular basis. We have the experience and knowledge to ensure that you receive the correct advice when confronted with difficult financial decisions related to filing bankruptcy. Contact us at 904.725.0822 orbkmickler@planlaw.com.

Bryan K. Mickler