As we enter a new year, many Americans will reflect on the financial mistakes they made in the past and the mistakes they should avoid entering the new year. While many Americans usually have some kind of New Year's resolution, most do not last for a month even before returning to their old bad habits. Most New Year's resolutions involve weight loss, alcohol consumption and smoking, but some old-fashioned people want to make resolutions that will improve their psychological and financial well-being. In this world, everyone is under significant stress and if we could do something that would alleviate a little, most people think that they would be much happier. Money is one of the leading causes of stress-related illness and old concerns. Some of the lucky ones are afraid of having too much, but most of us are afraid of not having enough to make ends meet. Today, the majority of Americans are struggling with a debt that they may never be able to repay with their lives. Every year that number goes up and most people do not plan to go bankrupt until they can make those minimum payments. In this new year, people should consider being more proactive even if it requires them to use a bankruptcy file to get out of debt.
In 2008, the real estate market imploded, forcing the economy to do the same, forcing many people to declare bankruptcy to free themselves from their debts. Some people who went bankrupt might have avoided the process if they did not make some financial mistakes. One of those mistakes was buying a house they could not afford. It is not because someone would offer them a zero rate loan for five years that it will allow them to afford it in the future. At some point, the bill will be due and the payment will double. Today, the mistakes that were made before the collapse are made again. I guess people do not learn and quickly forget the consequences of the economic crisis for the whole world. Common sense tells you that you can not afford it and that it is too good to be true. Like everything else, if it sounds too good to be true, it's too good to be true.
Now, these people have lost their homes because of foreclosure and wallowing in self-pity for making these mistakes. Everyone makes mistakes, the difference between winners and losers is that the winners only do them once. Many more people over the next few years will be filing for bankruptcy for similar reasons. Creditors have pushed money back to people who can not afford it in the hope of stimulating the economy. History tells us that spending does not revive an economy, but that saving does. Nothing is wrong if someone has to file for bankruptcy to eliminate their debt. They should simply be sure to learn from the mistakes that put them in financial trouble. To be clear, a capitalist society would not work without a bankruptcy, because entrepreneurs would not risk anything if they knew they would be in debt for the rest of their lives.