Overpowering Debt Can Easily Cause Bankruptcy
Just imagine a life in which you are constantly fearful of the future. You have reached a point in which any income you have is now being used on absolute necessities and paying minimums on multiple sources of debt. Each month has nothing to look forward to but barely scraping by. You are worried about any small event that could push you over the edge. You’ve started searching for information on bankruptcy on the internet.
First of all, this is no way to live your life.
If you are in constant fear you will be affected in so many more ways than just financially.
- You won’t be able to spend money on fun activities/stress relief
- You become more isolated and tend to stay inside more to avoid spending money
- Relationships suffer because of the isolation and reluctance to talk about the issue
- Elevated stress causes problems with sleep and diet
- Work is affected because of lack of sleep and general stress, leading to fewer opportunities
All it Takes is One Straw…
All of these things only help to fuel the negativity associated with debt. It starts to create a life that is simply not enjoyable and every task becomes just a way to survive the next day. Do millions of people survive like this everyday? Yes! Are they miserable? Yes!
If you are spending all the money that you are making each month you are already in a dangerous position and this is not even including the debt sitting behind it. You can probably handle a couple of unexpected financial situations by taking out more loans or other means of financing, but at a certain point you will you will be hovering on the edge, just waiting for the last straw to break the camel’s back.
When You Are Servicing Debt With Your Whole Income You’re Just Waiting on the Straw
Once You Start Missing Payments…
At some point something will happen and you will just get behind. It’s going to happen; it’s already happened to millions of people before you and it could happen to millions more any day now. You’re going to miss a payment one month either because you had to spend money on an emergency, you forgot to pay the bill, or some other thing got in the way. It’s not like you were trying to miss the payment. The problem is that it’s the bad behavior behind the debt that isn’t changing. You’re probably still spending the same as you always have and refusing to see the writing on the wall.
Once the first payment is missed it could start a cycle of missed payments, “catch up” late payments, and other bad news. Late payments charge late fees which will increase the amount you’re spending each month. It could also increase your interest rates from missing just one payment. At this point the inevitable is just around the corner and you are starting to wonder if it’s even worth fighting anymore.
At a Certain Point Most People Give Up or Simply Can’t Fulfill Their Obligations
Why would someone want to live a life of misery with the only hope at the end of the tunnel being a return to “normalcy”? Think about it. When you are this deep in debt you aren’t able to see the positives anymore. All you are thinking is that if I hang on until everything is settled I could get back on track. I can still make it.
We are all humans. We can only last so long under brutal, unrelenting conditions. Everyone is going to give up eventually. At a certain point the pain is no longer worth it and you begin to think of just letting go and forgetting about the consequences because it’s too hard to handle anymore. This is the same sort of tipping point that you’ll reach anytime you’re in a position near rock-bottom. It could be drugs, a relationship, finances, or anything else. The problem is that in all of these situations it’s the bad behavior that isn’t changing. You’re probably still spending the same as you always have and refusing to see the writing on the wall.
You’ll be looking over the edge and instead of seeing a dark abyss, you’ll see a calm to the storm. You’ll see and end to the chaos.
You’ll call all of your creditors and tell them that you simply can’t pay.
Then you’ll have to call the lawyer.
The Psychological Blow
When you reach this point in the financial struggle you are essentially admitting defeat. You are allowing yourself to accept the fact that you can no longer do what you thought you could. This is a huge blow to your self-esteem and overall confidence. You’ve probably seen other people go through bankruptcy before and looked on with a little bit of sympathy and embarrassment. It sucks. Everyone knows it. Bankruptcies stick with you for YEARS (at least 7). Anyone that you ever want to do business with will know that you’ve been unable to handle your finances in the past and that will color their potential relationship with you as well.
For some people this might also be the moment that you finally have to fess up to everyone you love that you are actually in a financial mess. Maybe you’ve been hiding it, downplaying it, or otherwise misleading others that you don’t have a problem. This can rapidly change a lot of relationships because not only do they have to reconcile the fact that you are facing a bankruptcy, but also the fact that you lied to them or never considered them for help. It’s just not a good place to be in.
Check out the next article in the series to see what happens after bankruptcy, but don’t worry because this series will close with a little bit of light at the end of the tunnel. You can always start your journey towards debt relief!