It’s that time of year again. The time of year that most people call the most wonderful. I hate to be a scrooge, but the holiday season is really the time of year when people feel overwhelmingly obligated to buy everyone they know a present. While some might think buying gifts raises the Christmas spirit, it will actually raise your debt.

Buying gifts is a perfectly acceptable thing to do, but it shouldn’t come at the expense of your financial stability. The economy is still faltering and it’s a time of austerity when people need to tighten their purse strings. There are many approaches people take with holiday spending, but there are two that are particularly egregious. The first is to buy as much as possible on your credit card and then plan for a bankruptcy soon after. Another is to buy things for everyone and then worry about the consequences later.

While both of these are the wrong ways to approach the holiday season, the first is not only wrong, but it’s illegal. This topic has been covered extensively on this blog. You should never rack up debt on your credit cards right before you’re planning on filing for bankruptcy. Not only will the court go back and check for any luxury spending, but this debt will not be discharged.

You should also not ignore your mounting debt. There are many cheaper alternatives to the typical higher priced gifts that you can opt for. Don’t pretend like you have enough money to pay something off if you don’t. It’s that kind of mentality that could contribute to the need to file for bankruptcy. Your friends and family will understand if you simply don’t have the means to buy everyone presents. It’s that type of understanding and closeness that embodies the true spirit of the holidays.

Nevertheless, if you find yourself in any financial trouble, remember to talk to a Phoenix bankruptcy lawyer to see if bankruptcy is your best option. Never wait until it’s too late.