Rising Childcare Costs Lead Families to Consider Chicago Bankruptcy

The old saying goes that the only things guaranteed in life are death and taxes.

Well, add bills to that expression because we all know that hardly a day goes by without most of us receiving some kind of bill or invoice. Think about car payments, mortgage or rent payments, credit card bills, medical bills, insurance fees and more.
Add childcare fees to that seemingly never-ending list. A recent story on CNNMoney states that the cost of child care has risen by leaps and bounds during the past decade. Parents are struggling to pay for daycare and babysitting duties while they continue to work in order to provide good home, food on the table and other necessities.

Some may consider how filing for bankruptcy in Chicago can give families a good amount of relief from debts as they tackle bills that require cash. For families with expensive childcare bills, consulting with an experienced Chicago bankruptcy lawyer to discuss the options should be on the list of priorities.

The story states that the average cost of raising a child up to age 18 averaged about $226,920 in 2010 for middle-income, two-parent families. That's up 40 percent from 2000, when the average cost was $165,630.

Experts say that simple cost-of-living expenses have lead to the spike in childcare costs. Everyday tasks such as buying groceries, paying for gas, and covering basic child-rearing expenses -- diapers, baby food and clothing -- have also been skyrocketing.

Of the $226,920 it takes on average to raise a child, this is the average breakdown in costs:

  • Housing: $69,660
  • Child care/education: $39,420
  • Food: $36,210
  • Transportation: $30,900
  • Misc: $19,110
  • Health care: $18,420
  • Clothing: $13,200

The transportation organization AAA reports that transportation costs -- with the rise in gas costs -- have squeezed consumers by about 85 percent more in the last decade. With companies scaling back on jobs and even medical and healthcare benefits, it has taken a toll on parents to come up with the extra cash.

Analysts have found that childcare costs have soared to heights unseen before. For some, they pay more for child care than the mortgage or rent on their home. And if parents don't pay for child care, they can't work, so it's not a flexible bill.

This sometimes leads parents to fall behind on other bills in order to pay for childcare service. They sometimes take second jobs or work longer hours, if possible, to make more money to keep the household running smoothly. This may lead to more income, but it also leads to parents and children roaming farther from each other and can cause a stressful situation.

Some parents have bills they consider to be "flexible." But those are the ones that can come back to haunt them, as credit card companies use hidden fees and high interest rates to hit consumers hard when they least expect it.

This is where bankruptcy in Chicago can come into play. By eliminating debts and having bills wiped clean or at least driven down, bankruptcy can allow parents to focus on the most important bills, like day care, school activities and family enrichment. All the things that can truly benefit your kids.

If you need to speak to a Chicago bankruptcy attorney call the DebtStoppers Bankruptcy Law Firm at 800-440-7235 today for a free debt analysis. Call 800-440-7235.

More Blog Entries:

Medical Bills leading Cause of Chicago Bankruptcy Filings: June 18, 2011

Additional Resources:

The rising cost of raising a child, by Jessica Dickler, CNNMoney

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