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Did you know that car accidents account for 78% of injuries and 71% of all incidents in the United States? This is just the tip of the iceberg. In 2022, there were 63 million injuries in the United States and $1283.5 billion in costs. Anyone who has been the victim of an accident can attest that a life-changing incident can devastate you emotionally and financially.
Unexpected job loss due to injury, a sudden medical crisis, and other unfortunate incidents can threaten financial stability. However, through careful planning and focusing on long-term goals, it is possible to restore financial footing.
In this article, we discuss ways to regain control of your personal finances after a mishap.
1. Claim compensation
If you have been the victim of a life-changing accident, you must act promptly and seek compensation from the responsible party in a timely manner. Let's consider the example of St. Louis, a city considered the most unsafe in the United States. Here, the probability of being involved in a life-changing accident is higher than anywhere else in the country.
Fortunately, according to TorHoerman Law, St. Louis has a five-year statute of limitations. This means that victims have five years after the incident to file a lawsuit and seek compensation. Once the statute of limitations has expired, you can no longer seek compensation from the responsible party.
It is imperative to find experienced personal injury lawyers in St. Louis before the statute of limitations expires to help you navigate the legal landscape. A professional attorney will use their legal skills to investigate the incident, gather evidence, and build a strong case for you.
Crucial evidence includes statements from witnesses who were present during the incident, medical records, witness statements, etc. However, knowledge of the legal system is a must to leverage the evidence to build a strong case. And since there are 1.3 million lawyers in the United States, it's easy to find one to build the case for you.
2. Tackle debt strategically
After a life-changing incident or accident, medical debt is commonplace. And depending on the severity of the injury or situation, the burden of medical bills and debt can cripple financial stability. In such cases, it is imperative to tackle debt head-on with a strategic approach.
According to the latest government data, Americans have at least $220 billion in medical debt. Even more alarming, about 3 million people have more than $10,000 in medical debt, and 14 million Americans have more than $1,000. Medical debt is a persistent problem in the United States, even though more than 90% of people have insurance.
If you are one of those who have significant medical debt, here is a guide. Due to the high interest rates, it is important to prioritize debts with high interest rates such as payday loans and credit cards. Do not hesitate to contact your lender and negotiate a lower interest rate.
3. Discover suitable job offers
One of the most devastating consequences of an unfortunate event that is not a fatal injury is a significant loss of work productivity. This results in a significant financial loss for the victim. A recent study found that lost earnings due to long-term injuries amounted to over $50,000 over a 14-year observation period.
One bright spot is that according to the US Bureau of Labor Statistics, 24.2% of people with disabilities were employed in the US in 2023. Consider investing in further training to improve your employability and look for better-paying opportunities. Also, consider gig economy platforms for instant income.
Also look for government assistance programs that offer job training or financial assistance to people in need. If you're trying to rebuild your financial base after an accident, having a job should be your top priority.
4. Prepare a financial safety net
Finally, as you gain financial stability through the steps above, prioritize building a safety net for future uncertainty. The first step to building a financial safety net is to set aside a small percentage of your income for an emergency fund.
Start small by saving at least three or six months' worth of expenses. This will come in handy if another failure in the future results in a loss of your job or income. With this cushion, you can focus on getting back into employment rather than just making ends meet.
Also, review your insurance coverage to make sure you have adequate coverage for health issues, disability and life-changing events. Once your finances are stable, focus on long-term goals such as investment strategies or retirement planning.
Life-changing accidents are unpredictable, but their consequences are predictable. Preparation is key here. Start by creating an emergency fund and planning for any unfortunate eventuality. If you are already a victim, seek compensation from the responsible party, plan your lifestyle, manage your debt effectively, look for jobs, etc. to regain financial stability. With resilience and determination, it is possible to overcome setbacks and emerge with a strong financial foundation.
Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
