There is absolutely no doubt that a successful and stable financial life can be achieved only by those who are prepared to be ruthless about the same.
If you are prepared to be generous and are going to
- pay high interest to all your lenders
- make all payments on time
- waste your hard earned income in this manner, you will definitely find it difficult to avoid debt traps and debt problems.
You must keep in mind that the financial system itself is not free of flaws. There are many financial institutions that paid huge bonuses to its executives when they were making huge losses and were at the brink of bankruptcy.
Institutions that were propped up by the stimulus package did not hesitate to pay high bonuses. In such a scenario, if you are going to be extremely honest and sincere and naïve, you are probably going to contribute to the profits earned by financial institutions at your loss.
There is a fine difference in being practical and pragmatic and being fraudulent. If you declare bankruptcy or if you try to avoid repayment of debt by other illegal means, you will be causing a huge loss to your creditors.
On the other hand, if you demand that the creditor waive a portion of the profits earned to help you get out of your financial trap and if you promise repayment of the balance amount in a prompt manner, that is a pragmatic solution to your debt problems.
There are many persons who confuse morality and integrity with settlement. They feel that a settlement is immoral. There are some points to be considered which justify the demand of settlement made by the ordinary credit card holder.
For starters, credit card issuers are not paragon of virtue themselves. Using intimidating debt collection agencies – this is one of the worst practices of the credit card industry. The fact that the government had to step in and enact CARD Act makes it obvious that you will be making a mistake by being too generous to credit card issuers.
Financial institutions are being propped up by the stimulus package. You are doing nothing but demanding a share of your own money that the government has spent in the form of debt settlement.