The causes of family financial problems and the effects on them

Financial problem can be defined as the difficulty in paying off debts. Most of the family nowadays may face financial problems because of the low income level and overused of their credit card or gone into too much debt.

There are many causes of financial problem. The most noticeable factor is that most of the family members do not have any financial education and do not know how to manage their finance. They making decisions simply without thinking further and let other people manage their finance for them. Choosing the wrong kind of financial advisor is also one of the main reasons why family nowadays involve in financial crisis. Some people are tempted to let the wrong kind of people to manage their finance situation. It is important to find a person that have good communication, and understands your needs. The best thing to do is to look for a person that works in a financial office and makes his money by advising and managing personal financial accounts, someone that has been around for long and that will have the experience to guide the family through the process.


Financial problem definitely does give bad impact towards the whole family. It can cause strife and problem with spouse and other family member. Children especially will be neglected by their parents and this automatically will effect their education. They cannot concentrate in their study and cannot give attention during the learning process. The parents also will suffer the bad effects such that they will not give full commitment in their work and this will decrease their performance of job. Furthermore, someone easily can be stressful and this leads to depression. Once the person faces these situations, he or she cannot think wisely and take simple way to solve such problem by committing suicide.

In a nutshell, there are many ways to handle financial problem. It is best if ones can admit to their creditors that they have financial problem and try to work out a solution with them until they can rectify their family financial situation. The family should try to avoid financial problem by having good financial planning.

BY: NORIZZATI BINTI MOHD HANAFI(103141)