In 2011 1.4 Million people filed for bankruptcy. The 5 most common reasons why people file for bankruptcy can be due to medical expenses, job loss, poor/excess use of credit, divorce/separation or unexpected expenses. Going back to poor/excess use of credit, 43% of American families spend more than they earn each year. For job loss, 2 out of 3 have lost a job and half have experienced a serious health issue. The average credit card debt per household is $15,799. In America the average college student graduates with $20,000 of debt.