When it comes to facing bad news, it’s hard to be honest. This is just as true when it comes to personal finances as it is with other things. That’s why many debtors bury their head in the sand and pretend that they don’t have a debt problem while they sink farther into a financial black hole.
Below are a few reasons why you must be honest, at least with yourself, about your financial situation:
If you’re not honest with yourself about your financial situation you won’t be able to see what’s really going on and take action before it’s too late. Many debtors who wait until the last movement to file bankruptcy often say that they don’t know what happen, that their debt problems just seemed to spring upon them suddenly. But the truth is that in most cases they simply weren’t honest with themselves about their debt problem and the possibility that they might need to file bankruptcy.
Being dishonest about your financial situation can also cause you to do things that could make your debt situation worse. Some debtors have gone on spending sprees just a few weeks or months before filing bankruptcy because they really believed that they were going to be able to pay it all off. That is until they finally faced the reality of their debt problems and their need to file bankruptcy. Unfortunately for them, those recent credit card charges will need to be repaid even with the bankruptcy filing.
Finally, being dishonest about your financial situation can strain your family relations. Many debtors ignoring their debt troubles and avoiding bankruptcy find that their marriages are strained because their spouse may see the trouble they refuse to acknowledge. One spouse may want to seek help, negotiate with creditors or file bankruptcy, while the other refuses to see that they have a problem. This of course is a recipe for divorce.