Some Louisiana residents with debt problems try to avoid bankruptcy at all costs, fearing that the stigma of going through bankruptcy will brand them a financial failure. However, remaining under the pressure of financial debt without seeking bankruptcy relief can create added worries and stress, and could also make you take actions that endanger your well-being. Here is a look at some problems that might be created by avoiding bankruptcy for too long.
As explained by Money Crashers, people suffer under added stress because of financial debt. They worry so much about their debts that they cannot concentrate on their normal life activities. Some people are so preoccupied over money they owe that they cannot perform well at work. They may lose out on important work opportunities or get fired, which makes their financial situation even worse.
In an effort to avoid bankruptcy, some people resort to using their savings, like their retirement accounts, to pay their debts. However, raiding your savings is depriving yourself of future money that you may need when you are older and are no longer able to maintain a steady job. Taking out retirement money or savings can also deprive you of money you may need if you get sick in the future.
Sometimes people decide to put grocery or gas payments on credit cards while devoting their paychecks to paying off their debts. However, this will just increase your overall debt because you will incur interest on your credit card as you mount expenses on it. According to Nerdwallet, some people go so far as to forego buying food and medicine so they can divert paycheck money to paying off debt. Depriving yourself of essentials, however, can put your health at further risk.
Fear of the stigma of bankruptcy should not be a cause to endanger your health. Going through bankruptcy and discharging some of your debt may be a great benefit to relieving you of stress and allowing you to pay for essentials without worry. There are a number of options, including Chapter 7 bankruptcy, that you might consider.
