DrSteve gives us the tale of a man in Texas who was living his dream - married, owned his own company, had health insurance - until a car accident radically altered his life and left him homeless.

The medical bills quickly blew past what his insurance would cover.  The owner and driver of the other truck did not have insurance, like 10-20% of vehicle owners despite the mandate to buy auto insurance, so Mr. Benson and his insurance company were unable to go after that source.

I’ve been doing some research on medical debt and bankruptcy lately, and this story was heartbreaking. Sadly, it shares much in common with many of the people who run into serious financial problems following an illness or injury.

Medical bills can quickly become overwhelming, even for the insured. If you need serious health care, the financial fallout is often more than just another bill.

Many people lose significant work time because of illness or injury. The new bills and loss of income may put strains on their mortgage or lead to an increased reliance on credit cards, which can also get out of hand quickly.

Fortunately, DrSteve’s story has a happy ending:

Eventually, he wound up in a shelter, and eventually he was able to put his professional chef skills to work in the “soup kitchen.”  From that he has worked his way back to sobriety, fulltime employment and housing.

If you’re facing severe medical debts, don’t wait to take action. If you need to get your debt under control, know that help is available.

You’re probably familiar with the tales of atheletes wasting their millions on lavish extravagances. Jason over at Automatic Finances has a great post that pulls some practical advice from athletes tales of money mispent on bad investment and shady “financial managers.” But what’s scary are these stats:

78% of retired NFL players are bankrupt within 2 years. For NBA players, 60% are broke within 5 years of retirement.

However, the athletes profiled by USA Today aren’t in this mold. Take Hall of Fame defensive lineman Willie Davis. He played for Vince Lombardi in the days before million-dollar contracts.

The now-73-year-old managed his money wisely - at one time, his banking investments were worth millions - has scene his fortune dwindle because of the housing bust. Former New Orleans Saints running back Deuce McAllister owned a Nissan dealership that was forced to file for bankruptcy.

These tales are reminder that even smart investments can turn sour for even smart businessmen. Financial pitfalls could befall anyone, even if you’ve saved for a rainy day or watch your budget closely.

Just remember: If you find yourself in rocky financial waters, know that you do have options, and there is help available.