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The universal impact of debt on individuals' finances

There are few things as universal as debt. No matter a person's job, wealth or status in life, large amounts of debt can drastically affect a person's financial health.

For instance, many athletes who are well known to Colorado residents have had trouble in their search for debt relief. Boxer Mike Tyson, for example, was said to worth over $300 million at one point. Notwithstanding his wealth, Tyson has struggled over the years with unpaid bills to several creditors, including a $13 million bill to the Internal Revenue Service.

Likewise, football player Michael Vick was once the highest paid player in the NFL, but went through a period of financial difficulty, including filing for bankruptcy. Vick is playing with a new team now, but just emerged from bankruptcy over a year ago.

Ultimately, the lesson from the above athletes and others is that everybody can experience financial difficulty, even if they earn a substantial income. Unexpected life changes can strike anyone, including a job loss, medical issues or failed investments or real estate transactions. These can all factor into struggles with debt, which, in turn, can make it necessary for a person to file for bankruptcy.

Fortunately, while anyone can fall into debt, bankruptcy can help bring anyone out of debt, no matter their station in life. Bankruptcy gives individuals a fresh start by wiping away their unsecured debts, such as the credit card bills that plague many individuals' finances. After the debt discharge, individuals can get back on their feet and regain the success they once had, as the above individuals have done.

Source: The Epoch Times, "Five athletes worth more than $100 million that went bankrupt," Jim Liao, June 25, 2014

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