"The holidays only come around once a year."
"They would really love this gift...it will only cost a little more."
"I'm sure that my creditors take the holidays off too, so that buys me some extra time to make a payment."
At one point, or another, we have all made these types of excuses that allowed the little voices in our head to ignore the realities of our responsibilities and cut loose with our finances and spending.
Unfortunately, when our holiday spending (o.k. overspending) is over we are left with a long, cold winter and even more debt. For some of us, holiday spending can become a "spending finale" of sorts that leaves our only option for relief to file a Chapter 7 bankruptcy or a Chapter 13 bankruptcy.
How Did I Get Here?
No one ever intends to put themselves in a position to file bankruptcy. But there are behaviors we exhibit that help us to ignore a serious situation such as being on the brink of bankruptcy including:
1. It's easy to deny that there is even a spending or financial problem
2. It's easy to put off dealing with a debt problem for another day
3. It's easy to hope that things will get better
4. It's easy to do nothing and avoid steps to address your problem
Holiday Debt Naughty List
Copy the list below, print it, and place it in a visible area where you will be reminded of what not to do during the holidays in regards to your spending. (If this does not apply to you then share it with someone you know and care about who has a tendency to overspend).
1. Postponing Responsibility - It is very common to put your debt out of your mind during the holiday season and tell yourself that things will simply get better in the New Year and it will be at that time when you really address your problem.
2. Saved by a Tax Refund - Perhaps you are waiting for a tax refund to show up to address your debt. What if it does not arrive? What if you actually owe money to the IRS? What if you didn't have to use your tax refund to pay debt and could save it instead?
3. Charge It - Some people may be in a severe financial situation. Yet, during the holidays they continue to use their charge and credit cards without an ounce of fear only to realize that they will ultimately pay the price in the New Year.
4. Debt Addiction - Some people know that they are already in an untenable financial situation and already plan to file bankruptcy. Yet, they continue to incur more debt of all types and figure that the relief of their debt will be all-inclusive when they file. What these types of people don't realize is that by adding more debt could cause serious and unwanted complications to their upcoming bankruptcy.
What To Do Next?
You don't have to struggle with managing the holidays, worrying about your debt, and wondering what the New Year will bring for your financial life and freedom.
Contact the bankruptcy experts at Gold, Lange & Majoros, P.C. or call (248) 350-8220 for a confidential review of your situation and how we can best help you.