By John G. Merna, Esq.
Yes. This is another New Year’s resolution article. I know — you have seen plenty of them. However, I believe this one is different. It is not about losing weight, getting organized, or taking a vacation. It is about getting richer. Specifically, it is about how getting out of debt can make you genuinely, measurably wealthier.
I apologize in advance for adding to your inbox. However, I believe this article could change how you view your finances — and at best, it could change your life entirely.
The Simple Answer: Get Out of Debt
What is the one resolution that will make you richer? Resolve to get out of debt and stay out of debt this year. Bankruptcy is one of the most powerful legal tools available for Virginia residents who need a genuine fresh start.
Most people understand this simple idea: if you have no debt, you have no monthly payments. That alone puts more money in your pocket every month. However, the harder question is one most people never confront. What does it actually cost to maintain a lifetime of debt?
The Hidden Cost of Debt
Consider your mortgage. A $200,000 home loan at a modest interest rate over 30 years costs nearly twice the purchase price in total payments. In other words, you pay for your house twice. That extra money goes directly to the lender — not to your family.
Credit card debt is even more expensive. A $10,000 balance at 19% interest, paying only the minimum each month, takes over 30 years to pay off. By the time you finish, you will have paid over $27,000. As a result, you paid nearly three times the original balance just to maintain that debt.
Five Reasons Bankruptcy Makes You Richer
1. Instant relief. You immediately stop paying debt you cannot afford. That money stays in your household.
2. Instant protection. The automatic stay stops garnishments and collection calls the moment you file. Therefore, your paycheck is yours again.
3. Affordable. When you consider the monthly payments you are making just to service bad debt, paying a bankruptcy attorney is a bargain by comparison.
4. Easy. The process is simpler than most people expect. Your attorney does most of the work. You gather documents and answer questions.
5. Fast recovery. If you compare the time it takes to pay off bad debt versus the time it takes to rebuild after bankruptcy, bankruptcy wins. Most clients are rebuilding credit within 12 to 18 months.
Make the Resolution That Actually Works
Gym memberships, diet plans, and organization apps are forgotten by February. However, eliminating debt is a change that lasts a lifetime. It affects your health, your marriage, and your future. Financial stress is the leading cause of divorce. It is also a leading cause of poor health.
If debt is holding you back, call Merna Law at 757-490-3800 for a free consultation. We serve clients throughout Virginia. Our fully virtual process means you can take the first step today — without leaving your home.