Financial hardship refers to a difficult financial situation in which an individual or household is unable to meet its financial obligations. It can arise due to a variety of reasons, including job loss, reduction in income, unexpected expenses, medical bills, divorce, or natural disasters.
Financial hardship can lead to stress, anxiety, and difficulty in meeting basic needs such as food, shelter, and healthcare. It can also impact an individual’s credit score and ability to access credit in the future. In some cases, financial hardship can lead to bankruptcy or foreclosure.
To manage financial hardship, individuals may take various steps such as creating a budget, prioritizing expenses, negotiating with creditors, seeking financial counseling or assistance, and exploring options for additional income or benefits. It is important to address financial hardship as early as possible to prevent it from worsening and to seek help if needed.« Back to Glossary Index