Most people wait too long to file for bankruptcy. They struggle for many years to pay off or pay down their debt. As they do, they don’t make much progress on fixing their credit reports but they do increase the bottom line of predatory lending companies by giving them the power to charge high interest rates and fees.

They also shovel money into the maw of collection agencies, even though doing so doesn’t help them repair their credit and doesn’t help them improve their lives. The phone continues to ring as other collectors continue to badger them.

Many people don’t come to our offices until they’ve been pushed to the brink of crisis. The car has finally been repossessed, or is about to be. They’re about to be evicted, or they’re about to face foreclosure. Someone has sued them, which means they might face wage garnishments. 

Most people do this for two years or more before they finally get help. 

Bankruptcy is Not a Moral Issue

Forget the political rhetoric. Apologists working on behalf of the consumer credit industry never seem to want to talk about the predatory practices of those industries or the massive profits they receive. 

They never seem to want to admit that major corporations, already the beneficiaries of massive tax breaks and subsidies, routinely file bankruptcy to get out of paying their obligations. The average American is expected to somehow do better than those organizations do.

Seven out of ten “long strugglers” say they feel shame about filing for bankruptcy. Yet there is absolutely nothing to be ashamed about. Our economy is a brutal place to attempt survival and it takes very little to knock the average person off of an even financial keel. All it takes for most Americans is a single visit to the hospital.

Stay Out of the Sweatbox

When you continue to throw money at creditors you deplete the resources you may need to find a new place to live during or after bankruptcy, to buy a modest used car during or after bankruptcy, or to make other positive changes that will help you get back on your feet.

You place yourself in a state of financial stress where you are choosing between paying a predatory corporation or keeping your own lights on, or putting food on your own table.

Keep in mind that your original lender has already received a massive tax break writing off the debt you were unable to pay. They’ve already harmed your psychological well-being by badgering you and shaming you for refusing to pay. 

Often the original creditor has made additional money by selling your debt to a third party collection agency. In some cases, the interest you paid on that debt before you defaulted paid for whatever you originally used the money for something like twice over.

By the time they file, median long strugglers owe more than twice the value of what they own. There is simply no need to put yourself in that position.

Get help today.

We can get you out of the sweatbox and on your way to a sound financial future. Contact our office for a free one hour consultation so that you can review your options today.

See also:

5 Bad Ways to Manage Bad Debt

When Does It Become Absolutely Critical to File for Bankruptcy?

5 Bankruptcy Myths, Busted