Americans' have long lived over there means as a society. The Great Recession has acted like a big slap in the face for many people in this regard, myself included. This has resulted in a certain amount of forced frugality, but many are turning to this new philosophy on spending voluntarily. The question is whether those facing large debts should file bankruptcy first?

I have to admit that I was very much against going frugal at first. The idea of not owning the latest Apple gadget was troubling. I've learned to live without such things the last few years and found I actually feel like I am no longer such a slave to the rat race. Millions feel that way as well.

Fortunately, I did not face a ton of debt when the Great Recession hit. I've been able to pay down what I owe to a manageable level [famous last words] and am committed to seeing the process through till all my debts are liquidated. Not everyone is in this situation. Some are carrying tens of thousands or even hundreds of thousands of dollars in debt.

Should they file bankruptcy to eliminate all or part of this debt? Generally, I would suggest the answer is yes. The very nature of living frugally is that you don't use credit or at least try to keep it to a minimum. Given this, the filing of bankruptcy shouldn't really hurt you excessively, but will give you a chance to get your frugal lifestyle underway with a minimum of fuss.

This doesn't mean you should just run out and file bankruptcy. It is a big decision even for the frugal liver. Take the time to go sit down with a bankruptcy attorney and get some professional advice. The decision is ultimately yours. Make sure you make it based on credible information. Then you can get on with your frugal lifestyle.