By Warren Dubrowski
A century ago, popular attitudes towards debt were markedly different from those of today. Not only were most of the mechanisms by which people accumulate debt not yet introduced, but people frowned upon owing money. For example, the founder and namesake of the J.C. Penney chain of department stores earned the nickname “Cash” because of his hatred of debt.
It was only when the titans of industry realized that extending credit ultimately ended up working in their favor that attitudes began to change. Debt was not the lazy man’s method anymore; “financing” was now there for the customer’s convenience. What began with consumer financing with a single vendor evolved into credit cards, lines of credit, second mortgages and payday loans, all of which are marketed without mentioning that they could be your one-way ticket to a date with a bankruptcy trustee.
These days, there is still stigma around debt, but the stigma is not attached to the practice of borrowing against future earnings. It is expected that a person, upon reaching adulthood, will need to start building their credit rating. Doing so will enable someone to finance large purchases like an education, car, or house. This is done by using credit cards responsibly.
It is also not stigmatized 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.
When someone doesn’t take action to relieve their debt burden, the situation can only get worse. Living with money problems is stressful, and has been linked to increase occurrences of depression. Disputes over money can harm relationships and families, and financial troubles are often cited as the leading cause of marriages ending in divorce. The slippery slope may even lead to drug abuse and crime.
The first step in solving a problem is admitting that you have it. That’s not easy for most of us to do, as pride goes before a fall. But it’s a necessary step to eat some humble pie and concede that your money strategies haven’t been working. If you can reach this point before the only person who can help is a bankruptcy trustee, you’ll be doing yourself a favor.
Bankruptcy still carries a lot of stigma. Not only is the filer subject to severe financial restrictions, but they would likely 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.
Admitting that you have a problem with debt may be the key to escaping it. You may find that people you know who are spending without concern may only be doing so to keep up appearances. You may even find that your friends and family will lend emotional support and understanding. If they react with judgment and scorn, you may need new friends.
Call the experienced and friendly bankruptcy North York trustees, dedicated to helping people regain control of their lives and find financial security.