It’s that time of year again. Holiday sales are ramping up and calling all of our names. While it’s tempting to take advantage of holiday bargains, if you’re experiencing financial difficulties – and especially if you’re considering bankruptcy — you’re much better off staying away from the stores and stepping away from the keyboard. As much money as you could save by taking advantage of deep discounts, you’re far better off taking a more conservative approach to shopping right now. Those prices — no matter how much you save — can get you into big trouble down the road.

Maybe it was a job loss that got you into financial trouble, or a pay cut, or a medical emergency. Maybe credit card debt put you in a financial hole. Whether it was one of these things, a combination of factors, or something else, now is the time when you need to exercise financial discipline because adding debt on top of debt will exacerbate the problem.

The truth is that the items that you see on sale are probably not essential to your life, and if you add them on top of your already existing financial stress, you’re going to end up doing nothing but paying interest on your credit cards. You may even be forced to take advantage of payday loans. All of these choices put you in the position of paying more for the items you thought you’d saved money on – it’s just spread out over time.

Not falling prey to discount temptation is especially important if you’re considering filing for bankruptcy. Even if buying on sale is well-intentioned, the fact that you accumulated more debt before filing could be viewed as fraud by the court and the trustee managing your case, and you could end up unable to have your bankruptcy case heard – or worse yet, you could find yourself in legal trouble.

The holidays are a time for happiness, and though giving gifts is part of it, the big sales offered by stores can blur the line between need and want. Rather than adding to your financial stress, spend your time focusing on what truly matters. Your family does not need expensive gifts as much as they need you to be present, in a positive emotional state.

If you need professional guidance on managing your financial situation, we can help. Contact us today to learn more.