Determining Needs vs. Wants
One of the reasons may debtors have to file bankruptcy is due to overwhelming desire to make purchases that are not required to maintain household or daily life. These purchases would fall into the “Want” category.
Most credit cards and finance companies are willing to finance items that the debtor’s credit report clearly reflects they can’t afford. Then begins the struggle to meet all the monthly payments. As a debtor you may think that the monthly payment is reasonable for these unnecessary purchases however they are overwhelming when you begin to have several small monthly payments. This when the funds needed to pay for basic “Needs” is depleted and your mortgage, auto payments and utilities will begin to suffer.
Making smart decisions about your purchases after filing bankruptcy will keep you from falling into the same poor spending habits. When filing bankruptcy will be required to take a Credit Counseling course and Debt Education course that can provide some great ideas about setting goals for purchases that you “want” and allow you to save funds for those purchases you “need” to make.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
