Don’t Bankrupt Your Holiday.

Don’t bankrupt your holiday.

Don’t bankrupt your holiday by giving into temptation.  The other day I was getting ready to work and I had an overwhelming urge to go shopping.  Now for anyone who knows me, this trait is totally out of character.  I hate spending money and unless I am in the Apple Store or Best Buy I truly hate shopping.  So where was this feeling coming from?

During the morning news segments Toys R Us and Target were going to head to head to see who could air the most commercials in during the 0700-0800 morning time slot. Aha! That is why I am thinking about door busters and what I had planned for Thursday and Friday.

This should come as no surprise to me because advertisers pay thousands upon thousands of dollars for research on how to convince you to part with your hard earned money.  One of the ways to entice people into spending money is to offer a free gift.  As such you will see many ads for give aways to a limited number of “first” customers this holiday season.  This increases the sense of urgency for you to shop at that particular store.  It is a gimmick to have you spend money, nothing more.

For example Toys R Us is offering a free gift bag valued over $30 to the first 200 visitors this year at each store except for Alaska, Hawaii and Puerto Rico.  For me I think about how much greater it would be if Toys R Us took that set amount of toys and donated them to the shelters around town. This would allow children to receive gifts when ordinarily they would go with out.  This behavior would be more in line with the holiday spirit instead of enticing people to spend money for things that they do not truly need.  Now in Toys R Us‘ defense they may already donate a tremendous amount of toys.  In fact they do have a whole charitable unit.  But my point remains focused on their full attack mode of advertising that is geared to convince you to spend money because your children NEED their toys.  The reality is many of the toys that are purchased are long forgotten 30 to 60 days after the holiday.

Our nation has become so commercialized people are choosing to wait in line for Thursday shopping specials instead of living their lives and spending time with their families on Thanksgiving.  Again creditors have convinced Americans into believing they are not successful and/or cool and/or a good parent if they do not have the latest and greatest gadget.  But it is these same creditors who complain when you have to file bankruptcy because you can no longer pay the 8-18% interest rate on the debt you incurred to be cool.

Every year it seems like October opens the Christmas flood gates.  We barely finish decorating for Halloween and the Christmas stuff hits the shelves and it becomes a full court press to convince you to spend your money.  So much so that many stores are opening on Thanksgiving in attempt to receive a bigger portion of your paycheck.  As a result Wal-Mart workers are pushing back and threatening to strike.  Once upon a time only Chinese restaurants and movie theaters were open on Thanksgiving.  Now everyone I think but Chic-Fil-A is trying to get a piece of your paycheck on Thanksgiving Day.

Let me give you a heads up from the front lines of debt relief.  If you are partaking in the holiday spending this year, be careful.  If you plan on running up your charge cards for Christmas and then seek to file bankruptcy, you may end up with a bad faith charge in your stocking instead of latest Ipod.  As the economy continues to circle the proverbial bowl, the creditors begin to raise their collective voices.  As they begin to squeal the United States Trustee begins to encourage all the trustees below them to seek out your assets to take, sell and pay your creditors.  Keep in mind bankruptcy was designed to provide debt relief to those whose deserve a fresh start.  Charging up credit cards during the holiday season knowing you cannot afford to pay them off does not qualify.

So word to the wise if you are planning to file bankruptcy but you wanted to charge Christmas gifts first, don’t.  Not maybe, not but what if, not my neighbor did, just DON’T!  Bankruptcy fraud is a felony punishable by five (5) years in prison.  What a Christmas gift that would be.

You are not a bad parent, person, partner, etc… for not being able to afford the latest and greatest.  We need to focus on what is important in our lives.  Focus on health, family, friendships and relationships in general.  You are not alone in what you are feeling.  In fact this is a common occurrence this time of year and a subject I have written on every holiday season since 2007.  You have worked too hard for every penny that is in your pocket.  Think before any creditor pressures you to spend your hard earned cash this holiday season.

Whatever you celebrate this holiday season, I hope that you find blessings and happiness in every moment.  If debt is weighing you down to the point where you cannot see those blessings, contact a qualified bankruptcy attorney to review your rights.

Remember that knowledge is power.  The more knowledge you have about why you are purchasing something the more power you will have to make an informed decision about that purchase.