Financial Denial, Not Just a River in Egypt
By Kurt O'Keefe, Attorney at Law on Sep 21, 2007 in General Bankruptcy Information
I believe the old saying refers to an ostrich hiding its head in the sand, which is myth to begin with.
The moral of the story is, you cannot avoid the consequences of your actions by ignoring them.
Bankruptcy is for those with no other alternative. Frequently, my clients have ignored their true financial situation, hoping for impossible events to rescue them. It is too late to try other methods by the time they contact me.
This article discusses some of the lies we tell ourselves that get us into debt trouble. #2 is not really a lie, people feel better when they buy it. And studies have shown it is easier to spend using a credit card than other means, in that our minds do not always make the same connection that credit card now means cash out of pocket later.
I like the drug analogy, which I push further, the commercial in which the woman breaks a heal and then charges her way to happiness, surrounded by a cast of joyous singers and dancers, is the credit card company pushing a high while ignoring the cost.
The article also points out the profit center that late fees and penalty interest rates are for the credit card companies.
Companies trying to get you to borrow money, by using their credit card, or mortgage, or loan, are doing it because is it good for them, they make money. You have to make your own determination, based on your real financial condition, whether it is good for you. Don’t take their word for it.
If you want to avoid bankruptcy, review these financial lies, write down your real income and expenses, figure out how you are going to repay before you charge on the credit card.
As Steven Covey, author of the Seven Habits of Highly Effective People, says, there is no law, but the law of the harvest.
If you borrow, you will have to repay, or probably file bankruptcy.
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