My clients often ask if there is an alternative to bankruptcy.  David Leibowitz, my colleague at Bankruptcy Law Network, outlined what it takes to get out of debt without bankruptcy.  The simple answer is make more money;  spend less on today’s expenses; use all your savings to pay off debt.

I want to pose the question:  even if that’s possible,  is it smart?  What do you forgo in that scenario?  If it’s travel; lattes; and premium cable, I’m OK with that.  But, if what you do without is emergency reserves; health insurance; and retirement savings, I think that a poor choice.

Whether financial difficulty was caused by bad luck or bad choices,  don’t make a bad decision, driven by pride, to compound the trouble by living without a safety net.  Too many of my clients arrive in my office with the conviction that they incurred this debt and, by damn, they want to repay it.  At some level, I applaud that desire.  But what are the likely consequences of repaying that debt if it means making no provision for financial stability now and in the future?

Part of reforming your financial situation involves looking beyond this month’s bills to the needs of the next decade and beyond. Lots of folks got into credit card debt focusing on their ability to make the monthly minimums, rather than on their ultimate ability to pay the debt off.

Particularly in times of profound economic uncertainty, consider the merits of a  fresh start and a plan for financial self sufficiency.