Now that summer has passed and Christmas is just around the corner, this is a great time a year, at least until all the credit card bills come rolling in. After summer vacation, the Christmas shopping season begins before anyone can pay off their debt they accumulated from their summer vacation. Although, the holidays are a wonderful time of the year beginning with Thanksgiving where we can all count our blessings and spend time with their families. Following the summer and as fall approaches we are immediately thrust headfirst into the commercialization of Christmas. Stores spend millions on advertising trying to get a piece of the action from the American consumers. This is where the consumer begins their slide into hopeless debt.
Instead of spending time with family members, gift giving has become a priority as most Americans have become so materialistic. It is no longer about the thought of the gift that matters, but the cost. After Christmas most people who overspent feel despair and depression from their overspending and begin wondering where the money’s going to come from for their extravagant holiday season. Some people that are already buried under a mountain of debt prior to the season continued to spend knowing that they always can file for bankruptcy after Christmas if they have to. This is where New Year’s resolutions are made and some people follow through while others go further in debt and kick the can down the road.
New Year’s Day is a sign of renewal and many Americans have resolutions on this with diets, exercise and even getting one’s financial house back in order by trying to become debt-free. The last one is probably the hardest to stick to without the help of a bankruptcy filing. Very few people stick to their New Year’s resolution and within a few weeks most are cheating whether it’s a diet, exercise or even trying to change their spending habits. The crazy thing is, a lot of people that thought they could file bankruptcy in the new year after having another good Christmas is becoming a common idea. The idea of spending when you know you can’t afford it having the notion that there is always a bankruptcy filing to get out of trouble is dishonest. It’s understandable if someone overspends during the holiday season and decides to get their financial house in order by filing bankruptcy.
According to The Bankruptcy Abuse Prevention and Consumer Protection Act all debts incurred with no intention of repayment or deemed fraudulent are non-dischargeable. Creditors can actually challenge any nonessential credit card debt that has been made within 90 days of the bankruptcy filing. So anyone that is thinking about doing this should think twice about their plans. For those that can’t afford to spend during this Christmas season, use this time to reflect on what Christmas is really about and not the materialism that advertisers have changed it to.