Having a salaried job can feel a lot better than not having one. You are not always scrambling to find enough gigs to pay your bills in time to avoid late fees. Your work schedule is at least somewhat predictable, so you can plan for your errands and housework instead of doing them in a rush when you have one square of toilet paper, one drop of milk, and no laundry detergent left, your laundry hamper is overflowing, and your dishes are piled up to the ceiling. Even though your financial situation is less precarious than some, anyone who envies you and assumes that you have no financial worries has never walked in your shoes.
A reliable paycheck that pays for more than just the bare necessities is not an automatic guarantee against debts that strain your finances. The good news is that the same debt relief options available to even more financially vulnerable people are also available to you, and in some cases, it is easier to access debt relief when you can prove that you have the income to pay your post-relief debt obligations. If you are gainfully employed but still struggling to keep up with your debt obligations, contact an Oakland Chapter 13 bankruptcy lawyer.
Debt Traps for the Expense Account Set
These are some common mistakes that people make when they earn more than enough to cover necessities:
Living Large – The higher your income, the more easily you can buy big-ticket items on credit and qualify to borrow vast sums. Before you know it, you are making monthly payments on your primary residence and your vacation home, plus your Benz, Porsche, Mini Cooper, motorcycle, boat, jet ski, and platinum credit card. Then you are in the same boat as the 99 percent, with your entire paycheck going toward installment payments and debts, except that your toys are more fun than the medical bills and BNPL groceries of the masses, at least until you think about how much interest you are paying on them.
Investing Instead of Saving – You might think that you are making a wiser choice by investing your surplus income instead of splurging it on toys and experiences, and to some extent, you are right. Investing like there’s no tomorrow is just as dangerous as splurging like there’s no tomorrow. The chances that your investments will not pay off are as great as the chances that the assets you buy will depreciate.
Failing to Anticipate the Next Financial Downturn – Thinking paycheck to paycheck is a mistake, no matter the size of your paycheck. You should put some of your income aside for a future month when your paycheck does not arrive on time, your employer cannot afford to pay you, or some other unexpected hardship.
What to Do if You are Still in Debt Despite Your High Income
Everyone has the right to file for bankruptcy protection, even people who have more money than you could ever dream of. If you have a salaried job, you are in a good position to apply for Chapter 13 bankruptcy, where you make payments toward your debts for three to five years and then discharge them, and there is no risk of the bank liquidating your assets.
Contact the Law Office of Melanie Tavare About Debt Relief for People Who Appear Financially Secure
A debt relief lawyer can help you find debt relief that fits your income bracket. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a free case evaluation.
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