Living Paycheck to Paycheck to Poor House!

Living paycheck to paycheck seems to be a pretty common occurrence for many people.  The bills keep coming month in and month out keeping them buried under debt.  The paycheck seems to get that much smaller every month yet somehow they make it all work, probably with more credit.  Is there a light at the end of the tunnel or are they doomed to live a life buried in debt payments?

Some choose the path of “Pay Nothing” a truly go for broke, forget the credit, “I don’t care what you want or who you are I’m not paying you a dime.”  This causes some major credit problems and has long-term repercussions.  After hiding out away from all those phone calls from debt collectors, after changing their address and their phone numbers they come back to a world that still wants their money.  This is not a good choice and will more than likely delay the inevitable, paying back what they owe!  If you find yourself considering this option just know that there is another way. 

Another choice would be to file for bankruptcy.  The most common form of bankruptcy is a chapter 7 which will completely eliminate or discharge all your debt.  The path is a two sided sword, did you learn from previous mistakes or are you doomed to repeat?  Life lessons are important and should never be ignored.  We should ask ourselves regularly if we have been in that particular situation before and what did we learn last time.  A bankruptcy will buy them time, their credit will suffer for some time but in the end it’s all about life lessons and having a plan moving forward.

The path of most resistance is always the path least travelled.  Most people look for short cuts or easy ways to avoid problems.  They focus on instant gratification instead of patience and pay a hefty price for their approach.  If you approach the debt with a plan, you can eliminate the debt, build wealth and have many of the things you always wanted.  Even if you are behind today there are still options that can help you pay your debt and keep your credit in tact. 

There are many people who developed a detailed plan but the one that sticks out in my mind is www.davidbach.com.  His plan is detailed yet easy to follow.  There are some free items on his site that will help you not only get out of debt but find money you didn’t know you have.  If you need some help putting it all together, I am happy to help.  You can reach me at brent@brentlane.net.