Money troubles are sticky, unpleasant business. Shouldering a debt may leave your with the feeling that you’ve done wrong, made mistakes, mishandled life to a shameless extent.
First: relax. You didn’t get here through a single move. The current state of your finances is the culmination of a collection of events, and their legacy doesn’t mean you need be trapped forever in the purgatory of guilt for past actions.
In other words, the fact that you’ve recently signed on for an expensive car lease or bought too big a house should not dictate any of your decisions today. Don’t let your past mistakes affect your future. What’s done is done and your focus now should be on what you’re going to do to get out of debt.
Don’t Fear The Process
It’s important not to feel hampered from making what might be the best decision of your life — to file for bankruptcy or consumer proposal — out of shame.
Nor out of fear, either. Don’t delay out of concern that your hard-won assets, however recklessly they might have been acquired, will be thrown into peril. You won’t lose everything if you file for bankruptcy. If you have a car loan or house mortgage, as long as you continue with the monthly payments and pay out the equity to the trustee you can keep those assets.
Once you’ve begun the process to recover financially, use the opportunity to learn from your past mistakes. You’ve got a chance to start over without the limitations your past decisions created. Start to rebuild. Learn to prioritize your wants versus needs. Make a plan to start putting some money aside each month once your bankruptcy is finished. Remember you are no longer making debt payments, so you will have more money to save.
The bottom line is this: If you’re struggling with debt today, don’t continue to stress about how yesterday’s behaviour is going to penalize your tomorrow.
- acknowledge your mistake;
- figure out what to do about it;
- take action.
And if you’re still troubled, give us a call.