My partner Jeena Cho and I have been discussing plans and strategies for 2014. Along with this comes the annual resolution pitch we all seem to give ourselves: eat better, go the gym, blah blah. There is something a little cheesy about this, but there is also something to be said for reflection and the vow to take action to better your life in the new year.

I will never stop harping on my number one problem I see with people in too much debt: waiting too long to take action. I know it is hard. Whether it is embarrassment, fear of the unknown or procrastination, waiting to act is one of the worst things you can do.

If you have too much debt, the interest and penalties that increase this out-of-control debt actually feed off of your very failure to act. You know the drill: the credit cards reach their limits and you can’t make the required payments.

Clients describe this sinking feeling in their stomachs when they realize they are over their heads. And when they can’t juggle things and make even all the minimum payments, the phone calls and collection letters are particularly intimidating.

One of my favorite parts of bankruptcy practice is seeing people rise again. The first sense of relief is our first meeting where the client realizes there is a viable strategy for getting themselves out of this mess. The second big step is completing the 341 meeting of creditors, and breathing a sigh of relief that it is over and not what they expected. The third step is getting a discharge. Getting out from underneath the debt and getting a fresh start brings about a much needed sense of hope.

So, back to the resolution. If you are suffering from too much debt, make the resolution to do something about it, and act. Do not just reflect, but take affirmative steps. Call a financial advisor, tax specialist or whatever professional you need. It’s so easy today that you can often just schedule appointments online. Regardless of how you go about it, talk to different professionals and make an informed opinion on how to proceed.

I’ve never had a consultation with someone that regretted getting good information.

Image Credit: EEPaul