Why People File for Bankruptcy

Bankruptcy Attorney Dayton, Oh

When a financial catastrophe hits us, many of us have to take on a large amount of debt to get through it. If we have money saved up, we might be able to pay for the unexpected issue that pops up such as:

  • job loss
  • illness and medical expenses
  • business failures
  • divorce or death
  • bad financial decisions

Consumerism

As Americans, we enjoy spending money. We learn from an early age to buy what we want now, instead of budgeting and saving our money for rainy days.

Our economy depends on us spending money, and money we don’t have by use of credit cards and loans. We are surrounded by marketing messages that urge us to buy, that our lives will be better, happier, more enviable if we would just buy their product or service.

Easy to get Credit

When we succumb to advertising that is all around us and seek out to make a purchase, if we don’t have enough cash on hand, credit companies are more than willing to lend us the money with interest. Credit makes it easy to live above our means and buy in the moment.

Banks and credit card companies offer credit because it is very profitable, and we pay the price for instant gratification. Credit card companies expect defaults and bankruptcies, and sometimes the credit companies never get paid, but because extending credit is so profitable, they continue to offer “money” to consumers.

Fresh Start

When we are living so close to the edge, paycheck to paycheck and we are hit by an unexpected expense or job loss, without any savings to get us through it. We inevitably will need to start looking for ways to get out from under the overwhelming debt.

Bankruptcy was set in place to help individuals and families get a fresh financial start. To free up some of their income to be able to pay for housing, food, and education.

If you are struggling to pay your bills and the creditors are asking where the money is, contact a Cincinnati bankruptcy attorney to find out how you can get a fresh financial start.

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