Part 2 So Why The Shame Part of it is that most folks are good, honest people who genuinely want to repay their debts. In fact, most of my clients would have been better off financially had they seen me a year earlier. But they don’t, because they try to work things out without having to file for bankruptcy. The problem is that, in today’s financial market, creditors make it as hard as they can to do this. They hike interest rates up to 30%, charge huge fees, call and write with nasty threats, and are unwilling to work with people who just need a bit of time to get things back on track. By the time most of my clients meet with me, they have already paid back, in full, the amount of money they borrowed on their credit cards, paid an equal amount–100%–in interest and fees, and are working on 200% to 300% of the original amount. So why do they think they’re such bad people? Creditors have an economic interest in making people feel bad about filing for bankruptcy. They run ads saying what a terrible thing it is. They whisper that it’s immoral. Their collectors make people feel like scum. And, since people want to do the right thing, these messages fall on fertile soil…and make people believe that they are bad for even considering bankruptcy, let alone actually filing. They aren’t.
Posted on: Mon, 01 Jul 2013 14:08:52 +0000
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