Day Care Costs, The New Second Mortgage

: Chris Lee Law Firm

  Filed under: Money Management

day careAsĀ  more Americans struggle to pay their debts and keep up with mortgage payments another source of financial strain is creeping in. The cost for child care in America is among the highest in most countries. In order to pay for rising day care expenses, more families are turning to second mortgages and home equity loans.

A Fine Line

The average cost for child care for a child under the age of four is around $850 a month. This cost rises closer to $2000 for children still in diapers or considered infants. These costs vary around the country and depend on additional factors such as the type of childcare chosen and how many hours per week the child attends. However, even these factors do nothing to combat the fact that child care costs have risen by nearly 6 percent over the last few years.

The recession, struggling job market and escalating costs of living have all brought increasing financial pressure for many families. Sadly, many have resorted to taking out personal loans or loans against their mortgages to cover these expenses. The trouble here is that defaulting on either of these types of loans can lead to bigger problems such as overwhelming debt and even foreclosure. This essentially creates a cycle of borrowing from one source to pay another, a fine line that separates success from devastation.

 

 


Are you a candidate for bankruptcy?
Would you like to find out if bankruptcy is the right option for you? Try our Free Online Bankruptcy Evaluation. 4 easy steps to see if bankruptcy could be the right option for you!
  • Step 1
  • Step 2
  • Step 3
  • Step 4
Please Select Each Box That Applies To You
Creditor Harassment
Loss of Income
Foreclosure
Disability or Illness
Current Expenses
Auto Loans
Credit Cards
Medical Bills
Payday Loans
Do you have any additional information you would like to share?
Contact Information