The road to getting out of debt is not a short one when you owe over $50,000 worth of credit card debt. Don’t you just wish you were a mega bank and you could just write down your debts when you make bad investments?
I wish I had that power.
I would write down a few thousand dollars worth of bad buys that I’ve made throughout the years.
Some people will think that bankruptcy is one of your biggest options when you owe so much money and you don’t even make that much in a year. But for me, it’s more of a principle thing. I spent the money, I made the good and bad decisions with the money I borrowed, so it’s my responsibility to pay off all the money I’ve borrowed and get out of debt.
Can you even compare the feelings of getting out of debt through hard work and being frugal versus getting out of debt using bankruptcy?
In one sense, you’ll feel total elation that you’ve climbed your way out of a huge hole and will have a tremendous sense of pride. You’ll also have developed the financial habits that will lead to a very prosperous future. You’ll be able to save money for retirement and for your kid’s college.
In the other sense, you might feel embarrassed that you had to file for bankruptcy. You’ll struggle finding a job because your potential employer will be able to check your credit and see you have a bankruptcy. You’ll struggle to buy a car or house because the lender will see you as a very bad risk. This will go on for at least 7-10 years if not longer.
Don’t get me wrong, I have considered filing bankruptcy to just wipe out my credit card debts.
But for me, that’s not the best answer. That would be the ultimate last solution.
There are plenty of other options available before bankruptcy is my choice.
There’s debt consolidation, debt negotiation and debt settlement.
Here’s my credit card debt as it stands now:
Bank of America $17154
So basically in a little over a month, I’ve reduced my credit card debt by about $1200.
I had a good month incomewise for the month of July so I’m looking forward to applying a good chunk of that to my Discover card so I can get that card paid off SOON!
I also had to divert almost $600 from credit card payments to help my girlfriend out with a dental surgery. If not for that, my debt would have gone down by another $600.
I’m sure this happens to a lot of people out there, those unexpected expenses that take away from your debt repayments.
The key is to not let it get you sidetracked for too long. Do what you have to do then get back to paying off your debts.
That’s all for now.
Thanks for reading.
Have a great day!
Adam – The Credit Blogger