« Google does it better. Again. | Main | Nor Cruel and Unusual Punishments Inflicted »

What drives Americans into bankruptcy?

posted by Zed on February 11 2005 20:22

Everyone knows that when individuals declare bankruptcy, it’s because of their out-of-control credit card spending, right?

Half of all U.S. bankruptcies are caused by soaring medical bills and most people sent into debt by illness are middle-class workers with health insurance, researchers said Wednesday. […] “Among those whose illnesses led to bankruptcy, out-of-pocket costs averaged $11,854 since the start of illness; 75.7 percent had insurance at the onset of illness.” […]

Fewer than 1 percent of all bankruptcy filings were due to credit card debt.

So remember to exercise self-control and don’t get sick.

Updated 2/23/2005: The Volokh Conspiracy asserts that the study does not support that conclusion.

|

Comments

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)