Interrupter CheckmarkInterrupter IconFacebookGoogle PlusInstagramGroupRamsey SolutionsTwitterYouTubeExpand MenuStoreCloseSearchExpand MenuBackStoreSign in

Ask Dave

Should I File Bankruptcy?

Dave says that filing bankruptcy won't change Kathy's behavior. She needs to get on a written plan and stick to it!

QUESTION: Kathy and her husband make $2,900 a month and have $50,000 in credit card and car debt. She thinks bankruptcy is her only option. Dave thinks otherwise, but it will take some sacrifice.

ANSWER: You can file bankruptcy and this debt will go away, but the person in your mirror won’t go away. You need to change your behavior. You need to make a written money plan and stick with it. If you don’t happen to your money, it will happen to you. You’ve been coasting along and now you’ve been torpedoed.

I know what it’s like to feel hopeless and I’m telling you that you need to change your behavior. Work a second job to get your income up and get on a written budget. Sell so much stuff that the kids think they’re next. It will take two or three years, but you can do it!