10 Things that Prevent Consumers from Getting Out of Debt
Most consumers who are buried in debt are likely looking for options in getting out of debt. There are options to get out of debt, such as debt settlement, chapter 7 bankruptcy and chapter 13 bankruptcy, but a consumer needs to be willing to learn about their options and take action by scheduling a free debt consultation.
If no action is taken, the consumer will likely fall further behind, continue to do harm to credit, face possible lawsuits and garnishments and end up needing to address the issue in the future when they have ran out of all alternatives. I talked about this topic on the radio at 1150 AM KKNW and you can listen to that segment here:
What are the 10 things that prevent consumers from getting out of debt?
(1) Emotions. Dealing with debt can be very stressful and emotional at times. These emotions can cause a person to simply bury their head in the sand and ignore the reality that action needs to be taken.
(2) Family. Sometimes family can be a great help in dealing with financial distress. Other times unfortunately they can provide bad, uneducated information regarding bankruptcy or debt settlement. Cultural dynamics and values may also come into play when dealing with debt to a consumers which can affect how a consumer takes on the debt issues. A consumer in financial distress should always consult with a professional first to get the facts before making any decisions that could be based on misguided information.
(3) Fear. Most people want to pay their debts, however if an when the time comes where you simply cannot keep up with payments, there is fear of what might happen if a bankruptcy is filed or a creditor files a lawsuit. The reality is that most people emerge from a bankruptcy in much better financial condition than they started, but may have heard or received bad information regarding bankruptcy and options that are available to help.
(4) Procrastination. In order to resolve financial issues, you need to be willing to put in some time to get the information from professionals that can help you out of your situation and then once that is received, you must be able to execute on the plan of action you decide. Sitting around for a year or longer when you know what needs to be done will only continue to cause stress and fear of the unknown when you could have resolved the issues at a previous date and obtained a fresh start.
(5) Financial Barriers. While you may already be experiencing financial distress, it is true that most professionals such as attorneys do not work for free as they need to work too to support their families. With that said, you can come up with a plan in order to pay legal fees by stopping payment to creditors who may be included in a bankruptcy or debt settlement plan.
(6) Pride. Nobody wants to file for bankruptcy or go late on paying their bills. You can feel like a failure and it does take an ego hit. With that said, bad things can happen to good people that are out of your control whether it be medical, a job loss, or a business that didn’t work out.
(7) Stubbornness. Even when you have the facts and know you are out of options; sheer stubbornness can cause people to wait until the 11th hour to take action. This usually happens when a judgment or wage garnishment is issued from a debt collector and then you are faced with not having funds to pay basic living expenses.
(8) Over Rationalization. Yes, you can rationalize every angle and possibility for dealing with debt and hang on as long as you can but most of the time that will not make the debt go away, or it is simply not the smartest move if you could get rid of debt today, but this may not be an option in the future due to an inheritance or new higher paying job. You should live in the moment and decide how to take action based on the current situation not what ifs.
(9) Too Busy. You may have a job, perhaps a good job, but you may still be dealing with debt issues from a divorce, prior business or being unemployed previous. Now you are very busy, but you realize something needs to be done to stop the financial bleeding. This results in no action being taken if you don’t take the time to get your financial house in order.
(10) Not Understanding What to Do. If you have not sought out professional help with how to resolve your debt then you may not know what direction to go, even though you want to try to resolve the problem. Perhaps you have consulted with somebody and you are still confused. Until your situation improves you should strive to get the answers you seek to understand the action steps you need to take.
If you live in Washington State and are looking for options for getting out of debt, give Symmes Law Group a call at 206-682-7975 to speak to a bankruptcy attorney and learn about your options.