Let’s face it. We all make mistakes. Whether you’re talking about a minor faux pas or a massive screw-up that will haunt you for years to come, it’s simply impossible to get through life without an occasional error here and there. But if I’ve learned anything over the years, it’s the way you handle the clean-up that really makes the difference.
You can’t go back in time and re-write history so it’s most important to have a plan to fix things as best you can. I think this principle can be applied to all of life’s little blunders, including the accumulation of debt.
I ask all of my clients how they became buried in debt, and the answers never surprise me. But they do vary quite a bit. For some people, they lived a baller lifestyle even though they couldn’t afford it – or as my grandmother would say, they suffered from champagne taste with nothing more than beer money in their wallet.
Meanwhile, others tell a tale of catastrophic life events; the death of a spouse, a major illness or unexpected job loss just years before retirement.
And of course, there are those folks that fall somewhere in between that may have just had a minor set-back at a time when things were already tight. Sometimes you fall behind and never catch up.
What doesn’t vary much are the ways people attempt to deal with their debts. In fact, there seems to be two methods I hear most often.
Some people attempt to pay their debts off little by little, even when it’s completely irrational. It’s a pure dollars and cents game. If your disposable income (that’s what left of your paycheck after you’ve covered the basics – food, rent, etc) is insufficient to pay significantly more than your minimum payment, chances are you’ll be paying back debt for 7-10 years or more.
Others stop paying altogether and stick their head in the sand, hoping their creditors will go away., This approach is equally irrational – and dangerous. Most creditors will eventually sue you, win a judgment, and collect by garnishing your paycheck or levying your bank account. Living with an anvil hanging over your head, just waiting for it to drop any minute is no way to live at all.
So, what’s the solution? Bankruptcy. It sounds extreme (and scary) to many people, but really it’s very simple and straightforward for most. Eligible filers can completely eliminate their debts in 4 months. Now this is a plan I can sign off on!
If you’d like more information, or to determine your eligibility for bankruptcy, please schedule your free phone consultation today.
Or, visit my website, which offers general information about bankruptcy. leclawonline.com
LAW OFFICE OF LEAH E. CAPECE, ESQ., LLC
Phone: (908) 353-6700 Text: (908) 266-4843 E-Mail: email@example.com