Personal Debt and Financial Management

I have a confession to make. I'm in way over my head when it comes to debt. It's my own fault and I admit that. Just like so many other people, I had put off buying things and going places, all because I did not have the money to pay for it. I did what too many other people did, I got what I wanted by using credit cards. As with every thing, those credit card debts will eventually have to be paid.

My credit score is very high and I am very proud of that. Each month I struggle to figure out how I am going to pay my bills because just like too many other Americans, I have to live paycheck-to-paycheck. So it was only natural, when I heard about the new bankruptcy law changes, I contemplated filing. I hated the mere thought of contemplating something that I knew would hurt my excellent credit rating. With the deadline approached for the new bankruptcy law approached, I spent many days; I contemplated what I should do. In the end, we decided to not do it.

I determine that it was through my own negligence I had caused my own debt and more importantly, I had to take responsibility to get out of debt. Our best friends however, chose to file while only being in debt a few thousand. Just before filing bankruptcy, they took a cruise and bought new cars. Now if that did not aggravate me. So at the end of the day they did not pay any thing for their cruise. The way I look at it, this is sealing from everyone else.

The amount of bankruptcies in 2005 jumped almost 30% as the lines in the court houses was never ending with the number of people trying to file their bankruptcy before the new law became effective. These bankruptcy fillings amounted to over 2.1 million in personal bankruptcies across the country. Those statistics make it the largest number of bankruptcies filed in any 12 month period in our history. That is scary. Think about that - 2.1 million people who found themselves in financial trouble last year.

The reasons for why people file for bankruptcy is endless, every thing from unemployment, excessive credit card debt, to medical bills. As a matter of fact, high medical bills are the main reason for the large number of bankruptcies. Let's face it; most people do not have adequate health care. If someone gets hospitalized today, with or without health insurance, the next thing they know is they over their heads in debt. That is worse than scary, it's sad.

I understand the need for the new laws, I really do. Each person should be looked at on a case-by-case basis. Because I do not agree to make it apply across the board. The reason that laws are changing is because too many people were taking advantage of filing bankruptcies. They'd charge all kinds of new appliances, furniture, clothing on credit cards, new cars and many things they absolutely had no true need for. Then, they'd file for bankruptcy and poof - their money woes were over. On the other hand, since the new laws have gone into effect, more obstacles have been placed in front of people, who need a new start, due to their crushing debt. Is that fair? Of course it is not fair. But, as you know, it only takes one person to ruin it for everyone else. And lots of people did.

If the main reason for the onset of bankruptcies was soaring medical bills, then it is time for the government to address the healthcare crisis. If credit card companies are complaining that they don't get paid when people file for bankruptcy, why give people such a high credit line? If people would just use common sense and better manage their debt, bankruptcies could be avoided, that's for certain. What kind of help is there for those individuals who are stress just trying to stay ahead of bankruptcy, so who is looking out for them?

Personal Debt and Financial Management

Filling for Bankruptcy

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