Bankruptcy And Christmas Shopping
As a Board Certified Consumer Bankruptcy Attorney, I definitely march to the beat of a different drummer. I like what bankruptcy can do for people, and I love educating people about the myths of bankruptcy: My favorite is when I hear the myth that all people who file bankruptcy are looking to abuse the system. On the contrary, in today's society, the next person that files for bankruptcy protection could be your neighbor, brother, co-worker, and/or best friend. I really enjoy speaking with people who work in retail, and they ask if you would like to save 10% by applying for a "Store Visa Card"? Here is where you insert nails scratching down a chalkboard. Nothing is more irritating for me to hear.
Who wouldn't want to save 10% off the already over-priced stuff that we are purchasing? However, there is something much more sinister really going on here. The consumer is being taken for another ride on the credit card roller coaster.
Of course, I take this opportunity to educate the retailer on the horrors of credit and how I believe that it is unfair to consumers for the stores to hawk their cards and a substantial discount, when in reality, the stores do so in the hopes of sucking the blood out of the consumer each and every month when they don't pay their bill in full. Christmas for these vulture stores is when the consumer is late on a payment because then the fees really start to accumulate.
So, how does a consumer win? Easy, the consumer wins by not over-spending on the holidays. If you can't pay for it cash, please do not spend it. Do not get sucked into the store credit card vortex just to save 10% today. Don't get me wrong, there is nothing wrong with saving 10% off your purchases, but if you cannot pay the bill in full at the end of the month, forget about your alleged savings. That 10% savings will cost you more in interest before February 2008. Again, let the buyer beware. Do not let your Christmas add to financial stress. Remember the reason for the Season.
