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How high wage earners sometimes find themselves in debt trouble

On Behalf of | Sep 30, 2020 | Bankruptcy

Prestigious, high-paying jobs come with unspoken expectations for workers. If you move up into management or executive positions, you will need to be aware of how you present yourself to your co-workers and to the general public.

Brand-name clothing, late-model vehicles and other trappings of success are often necessary for you to continue your upward trajectory at work. Unfortunately, needing to present success can require a lot of financial investment.

Especially for those striving for promotions, careful image management is critical. Unfortunately, when you dress for the job that you want instead of the job that you have, you may not earn enough to pay for that name-brand, tailored business suit.

Establishing an image of success through credit is a risky choice

You believe in yourself and want to invest in your own growth and future opportunities. Making strategic purchases to present an image of success and power to others can definitely help you establish momentum in your career.

However, once you set that standard, even if it turns out you will have to wait years for the next promotion and significant wage increases, you will have to maintain that image to continue to receive the prestige that comes with it. Putting all of those expensive outfits and new vehicles on credit could leave you in a position where you simply can’t pay off your debts or even make the minimum payments on all of them each month.

Bankruptcy is not just for those who have no assets and no income

All too often, people conflate Chapter 7 bankruptcy with bankruptcy in general. While it is true that Chapter 7 bankruptcy limits both your income and your household assets and might require you to sell off your property to repay creditors, not all forms of bankruptcy are like that.

For those earning competitive wages and who have established significant personal property, Chapter 13 bankruptcy can be a viable alternative. Instead of liquidating your property, you work with the courts to establish a temporary repayment plan, after which you can have your unsecured debts discharged.

If your career hasn’t grown at the same pace that your debt has, you may need to seriously consider if filing bankruptcy might help you regain control over your finances.

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