Financial Distress and the Holidays

If you are like many people in this country, the Holidays can be filled with worry and stress due to financial problems.  It is a time of year filled with myriad financial obligations – travel and gifts chief among them.  More often than not, we overburden our budgets during this time of year.

In my seven years of bankruptcy practice, I’ve found that consumers don’t want to make financial decisions during the Holidays.  This is most likely due to the pressure associated with  such decisions.  At a time of year when you already feel like you’re in the pressure cooker, you don’t want to upset the delicate balance that is keeping you sane.

What can you do to minimize the financial stress?

First, track your spending.  A budget is necessary to determine if you can afford to continue at your current level of spending.  Be honest with yourself during this meaningful exercise.  A budget that doesn’t track reality will only give you a false sense of financial stability.

Second, don’t accumulate more debt.  Resolving your financial problems cannot be accomplished if you continue to accrue more debt.

Third, make a plan.  Are you going to get a second job?  Are you going to curtail spending?  Are you going to file bankruptcy?

At Mayer & Newton, we offer free consultations to help you make a plan.  Please contact our office for a free consultation.

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