Credit, as long as it is easily available to an individual is a powerful temptation. Using credit, we are able to live beyond our means by competing with others who live a higher lifestyle than we perceive ours to be. Advertisers and the media create a utopian lifestyle image that we think we must achieve and cause us to make poor financial decisions to get it. The average person is hit with around 4000 advertising pitches in a day. The sole purpose of which is to convince us that we simply must have whatever it is that they are selling. Credit simply is the easy way to get all the things the advertisers manipulate us into thinking we MUST HAVE!
Once we pursue this higher lifestyle and become victim to the advertisers, we become vulnerable to potential catastrophic consequences because we have OVEREXTENDED ourselves without adequate protections. We could suffer financial setbacks that we are unable to overcome which could make us unable to pay for the debt we have assumed. Issues such as job loss, illness or failing to plan for unexpected problems can completely ruin your ability to meet your obligations.
Once a financial crisis arrives, first responses usually include feelings of fear and an overall sense of guilt. Fear is a powerful thing. It can cause a sense of uncertainty that usually includes stagnation because you lose the ability to figure out what to do next.
Guilt has its effect on a person as well. However, what we must not forget is that ISSUING CREDIT IS VERY PROFITABLE!!! Those who issue credit fully expect that there will be defaults and people will file for bankruptcy. Simply put, credit issuers expect that some people will default and consider default and bankruptcy losses simply as part of the cost of doing business. Thus, the creditor expects bankruptcy (and still makes huge profits anyway) so guilt is something that we really should not feel.
In conclusion, Bankruptcy should not be looked at in a negative way. Indeed, it has the ability to keep people in their homes, keeps families together, helps reduce suicide rates, and helps those who are unable to help themselves. Bankruptcy is a system that will forgive and not punish. Thus, we should see it as a way to regain your ability to CONTROL YOUR FINANCIAL FUTURE. Bankruptcy will provide you with a FRESH START enabling you to return to the ranks of people who are in control of their financial lives.