Navigating Bankruptcy in High-Cost Living Areas: A Guide for Salinas Residents
Did you know that Salinas (yes, Salinas) is one of the most expensive U.S. cities to live in? According to U.S. News & World Report, Salinas, California, is the seventh most expensive U.S. city to live in, just behind San Francisco, in sixth place, and ahead of New York City, ranked eleventh. That’s not a “top ten list” you want to see your city on!
Admittedly, the cost of living in Salinas is much lower that San Fracisco, but its inclusion on the list can be explained by comparing “how comfortably the average resident of each metro area can afford to live within their means,” according to U.S. News & World Report. So, taking into account the lower average income in Salinas, when compared to rents and other expenses, means that Salinas makes the top ten. Speaking of rents, the median monthly rent in Salinas is $1,718.00. Even more shocking is the median home price of $925,458.00.
Of course, the real issue is how do you deal with the disparity between income and expenses? Sometimes, common sense provides the best answer.
For example, how much are you spending each month on “nonessentials?” While I do not normally recommend using a credit card for everyday purchases, I will say that having a statement each month listing all of your purchases is an easy way to track spending. The next step is to actually look at your statement each month. (Don’t get paper statements? . . . maybe you should start.) Once that statement is sitting in front of you on the dining room table, take a pen and identify each charge as essential, helpful or luxury. Now I know people think the mocha-frap is essential, but it’s really not. So be honest with yourself and see how much you are spending on luxury items.
An expense I always allocate to “luxury” is interest. “Wait a minute!,” you say, “I don’t have a choice.” But you really do. I always tell my clients it’s okay to use a credit card, but only when you have the money in the bank (or under your mattress) to make the purchase. I can’t stress it enough, if you don’t have the money to make the purchase, then don’t.
Sometimes, it’s just too late. You’re already paying 25% interest on money your borrowed from the credit card companies. And then an unexpected medical bill or car repair pops up. What to do? That’s where I come in. I help people discharge their debt using the Bankruptcy Code. I don’t tell people they have to file for bankruptcy. I just give them the facts and let them decide what’s in their best interests. My job is to provide options. It’s up to you to decide.
Like I said, sometimes it’s just too late to catch up on things. The nice thing about bankruptcy, it gives you a FRESH START. Then you can arrange things so that you’ll never get behind again. It’s a great feeling being charge, even when the city you live in is the seventh most expensive U.S. city!
Ralph Guenther
