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    Categories: General

The Psychology of Bankruptcy

“I’m going to smoke this cigarette because I want to feel better now; I don’t care about the long-term effects.”  “I’m going to spank my son because I want him to stop crying now; I don’t care about the long term-effects.”

These attitudes are very common, especially when stress triggers our survival instinct and we cannot think things out.  A related concept is neuropsychopharmacological: our fear of short-term consequences outweighs our appreciation of long-term benefits.  “I will speed to work because I fear the short-term consequences of being late more than I appreciate the long-term benefits of a good driving record.”  “I will approve my daughter’s prom date because I fear the short-term consequences of her anger more than I appreciate the long-term benefits of a healthy relationship.”

Many consumers are reluctant to file bankruptcy because they fear the short-term consequences more than they appreciate the long-term benefits.  The financial stress causes us to fear the downside (a damaged credit rating), and not appreciate the upside (a debt-free new beginning).

The first step towards overcoming an obstacle is always the hardest.  The first step towards overcoming financial stress is to pick up the phone.  At Henley and Henley, we understand the stress in your life.  We also understand how bankruptcy, though it may be painful in the short term, can be a tremendous boon for you and your family in the long term.  Call today for your free consultation.

UPDATE: This post recently received an award for the longest word ever used in a blog.

Chris Ebert:
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