Note: This is a little bit of a rant!
This last weekend there were some bad storms in my area. I was just getting home from my weekend job around 8:15pm Saturday when my phone rang and one of my friends, we’ll call her M, asked if she could come over and hang out in my basement. Of course, I said yes and M arrived with her tiny dog about 5 minutes later.
The storms didn’t end up being too bad, we had hail stones about the size of baseballs but there weren’t very many of them. Here’s a photo one of my Facebook friends took of our hometown during the storm:
And here’s some of the hail collected by another Facebook friend who lives in my town:
Anyhow, during the storm M and I just sat around talking and somehow during that 2.5 hour period she disclosed to me that she had gone through a bankruptcy in January 2013. She said that because of this she can’t qualify for a mortgage until at least January 2015, though she is anxious to buy a house and quit renting her current home. She also added that there is another challenge in that she doesn’t have much credit history since all her accounts in the past were in her ex-husbands name. On top of this, her current boyfriend just went through a divorce and bankruptcy with his ex-wife during the fall of 2013.
As I sat listening to her talk about their combined financial troubles and how they’ve had to put their dream of owning a house on hold because of their bankruptcies, I felt bad for her but also scared and a little angry. The house they want to buy would be in her name since she can qualify for the mortgage sooner than he can, and I must admit the thought of them owning real estate together when they’ve only be dating a few months scares me. I also felt angry because M is a smart gal. How could she have gotten herself into this mess? A mess where both she and her boyfriend have such terrible financial history and yet they want to take on more debt! I doubt they can handle the mortgage, she just got a new car (I don’t know how she got the financing for it) and she’s already having trouble paying her bills as it is. Why does she think she can and should buy a house and take on a mortgage?
Just to give a little more information, M is quite a bit older than me, about 10-12 years so I felt uncomfortable stating these facts or asking too many questions, plus we aren’t best friends.
I must be a little naive, I had no idea there were this many people who went through bankruptcy. Do they even try to live on a budget and get their debts paid of themselves or do they simply resort to bankruptcy because they think it’s “easier”? It’s called responsibility and that’s a big part of being an adult! You took on the debt, you bought the crap you didn’t need and you should be responsible for paying off your debt and living very frugally to get there.
Now, I know there are some with unfortunate situations, job loss, medical emergencies, etc but for the most part the people living in the US are just over-consumers who got themselves in unnecessary and stupid debt. Please don’t hate on me for saying so, but it’s dumb. Yes, I too have made some consumerism mistakes, but I’m taking responsibility for my actions and paying off my debts myself.
What do you think about bankruptcy? Is it really necessary for most people?