In the past century, people’s attitudes about bankruptcy and debt have changed in many ways. Debt was considered to be financially irresponsible, and for some, it was deemed immoral. The man for whom the J.C. Penney department store chain is named so despised debt that he was nicknamed “cash”.
Once big business figured out that they could tilt the balance in their favour if they protected themselves against unreliable borrowers, they began to massage attitudes towards debt towards acceptance. Instead of being thought of as a lazy alternative to saving, financing was promoted as the convenient option for consumers. Since then, a range of borrowing instruments and products have been introduced to the marketplace, hyped for their promise to let you sow before you reap, but if you buy into the hype without thinking about the long-term cost involved, the end of your credit journey will be at the office of a bankruptcy trustee, forfeiting your credit privileges for years under a bankruptcy or consumer proposal agreement.
These days, there is still stigma around debt, but the stigma is not attached to the general practice of borrowing against future earnings. It is expected that a person, upon reaching adulthood, will need to start building their credit rating. This is done by using credit cards responsibly. Doing so will enable someone to finance large purchases like an education, car, or house, all of which involve borrowing against future earnings.
It is also more acceptable these days for one to carry credit card debt. Among American households with credit card debt, the average amount of debt held is over $15,000. What does seem to still carry stigma is admitting the extent of your debt. And unfortunately for those afflicted, there is still a stigma attached to admitting that you need help to fix your debt problems.
Struggling under the burden of escalating debt can lead to a range of associated difficulties. The constant worry of trying to figure out how you’ll pay for everything is stressful, and can lead to depressive episodes. Conflicts over money problems put a strain on relationships, and money is the single most common cause of marriages breaking up. From there, people are prone to turning abusing drugs and committing crimes.
Before you can deal with an issue, you need to admit that you have a problem. It’s not easy to admit we’ve been irresponsible. But if you want to turn things around, you have to admit that you can’t carry on with your old behaviour. Turning your attitude around before you require help from a bankruptcy trustee will save you years of financial penalties.
Bankruptcy still carries a lot of stigma. Not only is someone who files for bankruptcy subject to severe financial restrictions, but they might also find themselves looked down upon by others if they admitted that they had declared bankruptcy. To someone who has managed their finances well, bankruptcy may be equated with failure, but for someone who is in over their head, whether through fault of their own or through unfortunate circumstances, bankruptcy may be the appropriate solution.
Being forthright with your financial difficulties can be the thing that keeps you on the right path. It may turn out that other people have are spending lots of money just to maintain an image of financial comfort. It may turn out that your family and friends will be understanding, and relieved that you’re turning things around. There needs not be any shame in stumbling and getting back up.
Kevin Thatcher and Associates help individuals and families get a fresh financial start, providing friendly and customized bankruptcy Mississauga services.
