Filing for Bankruptcy: Don't Be Ashamed

Almost every American family at some point, experiences hardships that make it impossible to keep up with mounting debt. Most people try to do the right thing to avoid bankruptcy: work harder and longer, contact creditors to get relief, borrow money from family and friends, spend only on necessities, cut back on holidays, sell off assets, get a home equity loan, quit paying into 401K or other retirement accounts, cut life insurance and medical insurance policies, and pray. If this is you, READ THIS ENTIRE ARTICLE!

Credit card companies do not make it easier to go through financial hardships; they only make it worse by raising your interest rate if you are late on payments and tacking on over limit fees and late fees. Some people erroneously think that the hardship will be temporary and get another credit card to pay debts. Everyone gets credit card junk mail offering to give you 8% interest if you transfer three credit card balances to their company. You think, whew, that will help. You immediately do it. If this is you, READ ON!

But then, you don't cancel those three cards that now have zero balances because you need them to pay off the other bills that caused the hardship to begin with. If you miss one or two mortgage payments, it is virtually impossible to get caught up after they add the penalties and interest to your next payment. So, you use those three credit cards to make your mortgage payment, get caught up on the electric bill, or pay back that friend. You decide not to file income tax returns because you owe money. All the while, you still believe you can get caught up. If this is you, FINISH READING THIS ARTICLE.

Make the Call and Get Help

Credit: Aly Adair

Copyright: Aly Adair