The need for meaningful relief from credit card debt is an issue we continue to follow closely in this blog. As we discussed in our May 10 post, consumers have been cutting down recently on the amount of debt they are taking on. But problems with credit card still plague many people in San Antonio and across the nation.
Bankruptcy remains a viable option for addressing the issue in many cases. To be sure, much depends on individual facts and circumstances. But the goal of the nation’s bankruptcy laws of providing a fresh financial start for debtors should not be forgotten.
One reason that people are sometimes slow to take steps to resolve credit card debt is a sense of shame. One of the myths of America, after all, is that we’re all supposed to be able to succeed if we work hard.
But things like medical bills and job loss happen, even to many people who work hard. There are simply times when trying to pull yourself up by your own bootstraps becomes spinning your wheels.
It’s true that some financial advisers have concerns about filing for bankruptcy. The noted self-help seminar leader Dave Ramsey is one of those. But get this: Ramsey himself once filed for bankruptcy.
An important step in making bankruptcy an effective form of debt relief is therefore a psychological or even spiritual one. It is simply to accept that, in some cases, filing bankruptcy is the right thing to do.
Of course, another often-cited concern about bankruptcy is that it can harm your credit rating. The fact is, however, that it is possible to rebuilt credit through prudent actions going forward. Indeed, one of those actions may be getting a handle on your debts by going through bankruptcy.
Source: “I Want to File Bankruptcy,” The Huffington Post, Steve Rhode, May 25, 2013