This post is the third in a series on debt, bankruptcy, debt consolidation, and more. If you haven’t read parts 1 and 2 yet, I recommend you do before continuing.
History of debt (continued)
Fortunately, the days when Americans could be imprisoned for failure to pay private debts is long gone. That’s good, since the average American had $6375 of unpaid credit card debt in 2017 – over $1 Trillion in total debt. (2) Even if the credit card companies did want to lock up all those people, there’s no way our overburdened prison system could handle the load.
Nowadays, Americans have far more options for dealing with debt – and far more appealing ones – than were available in the 19th century. Bankruptcy is one of the ones we talk about most commonly, but there are others as well. In this series, we’ll discuss bankruptcy, debtor creditor workouts, negotiations with creditors, and avoiding debt consolidation scams.
If you’re facing crushing debt, bankruptcy is likely one of the primary courses of action on your mind. When compared with a debtor’s prison, bankruptcy seems like a pretty great option, but it still gets a bad rap in modern society. People too often associate the term “bankrupt” with failure or giving up. But in reality, this couldn’t be further from the truth.
What do Abraham Lincoln, Thomas Jefferson, Walt Disney, J.C. Penny, Henry Ford, Gary Busey, Nicholas Cage, MC Hammer, Bjorn Borg, Johnny Unitas, Mike Tyson, Terrell Owens, Jose Conseco, and Donald Trump all have in common? They all filed for bankruptcy. (3) Nobody would characterize this list as one of failures, financial or otherwise. In each of these cases, bankruptcy provided those involved with the chance to restructure bad debt and come back stronger than they were before, leading eventually to massive success. As Winston Churchill put it, “success consists of going from failure to failure without loss of enthusiasm.”
Check back soon for Bankruptcy, Debt Consolidation, and Debt Settlement – Don’t fall prey to scammers! Part 4. In the meantime, check out our page on avoiding debt consolidation scams.