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Southern California Law Advocates, P.C.
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Riverside Office

11801 Pierce St.
Suite 200
Riverside, CA 92505
(951) 241-8070
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Temecula Office

41690 Enterprise Circle N.
Ste. 202
Temecula, CA 92590
(951) 294-5471
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Orange Office

2112 E. Fourth St.
Ste. 103
Santa Ana, CA 92705
(866) 337-7220
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Long Beach Office

3711 Long Beach Blvd.
Ste. 710
Long Beach, CA 90807
(562) 506-0016
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Los Angeles Office

515 S. Flower St.
36th Floor
Los Angeles, CA 90071
(213) 330-8999
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Preventing Bankruptcy through Financial Education

Financial Education to Prevent Bankruptcy One of the key factors missing in our educational system is financial education. We teach our children how to add, subtract, divide, multiply, etc. but no where do we show them how to apply these simple principles in real life. We are creating a young population that knows the basic mathematical functions, but with no knowledge of when to apply the functions to financially improve their lives. Arming our younger generation with the skills to mange their finances can prevent them from getting into financial difficulties in the future or even filing for bankruptcy .

Credit card companies are continuously targeting our younger population with offers of credit that allow them to buy now and pay later. As a young college student I remember being offered credit cards without really understanding what it would cost me financially if I charged something now and paid it later. This is where financial problems can initiate if a person is not careful in managing new credit and debt.

We have assumed for the most part that parents should provide or will provide the financial education necessary for people to make financially responsible decisions in their lives. The reality is that many young adults are not prepared and do not understand, debt, interest rates, and the effect of paying debt over time. Without this understanding, it is easy for many young adults to succumb to a world of credit card debt where you enjoy the benefits today but may suffer the consequences later.

Our educational system should take a proactive approach to preventing future financial problems for many students by offering financial education classes that examine debt, budgets, and financial planning. It is important that our younger generation understand the effects of credit card use and debt management. These principles have to be reinforced at home and in our communities to function properly.

The focus in our society and media has been on consumption rather than on being conservative with one's money, and buying what is affordable. Providing our younger generation with the financial education within our school system will hopefully help guide them to make better financial decisions in purchasing products and services. Although there are unavoidable life events that may push people into financial problems, there are also many avoidable situations that are preventable. Having a better understanding of the time value of money can be a powerful preventative tool for managing your money now and your future financial health.


Debt consolidation can mean two coltmepely separate things: the first is getting a traditional bank loan to consolidate all your debts into one lower monthly payment. You need good credit to qualify. This does not damage your credit.Debt consolidation also refers to a practice of trying to settle your debts for less (credit card debt only not car loans). These firms have you deliberately default on your payments and trash your credit rating to settle for less. When you use such a firm, the monthly payment you make is going towards their settlement fees and to build a settlement account. Their fees are taken out first. Your credit cards will not be paid and will go into complete default during this process, which ruins your credit rating. This is deliberate so that they can attempt settlements for 50%. These firms have warm-fuzzy “feel good” ads which give the impression that they are doing your credit card companies a favor and that they’ll gladly work with them.Many credit card card companies refuse to work with debt settlement firms. Your creditors are not obligated to take any settlement from anyone. You can never predict how your creditors will respond..they might settle at 50% or they might serve you a summons, take you to court and if they win, you could be looking at wage garnishment. If the process fails you can end up in a much worse financial situation where you’d have to file for Chapter 7 bankruptcy.

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