What is Debt?
Debt is a sum of money owed to another party who is the debtor or borrower to another party who is the lender or creditor. The debt may be owed to a bank, care home, unpaid council tax or other important bills such as unpaid phone bills, unpaid TV license, unpaid income tax, unpaid mortgages, unpaid gas and electricity bills, unpaid bank loans and money owed to pay day loan companies. Regardless, debt comes in different shapes and sizes and can be owed to anybody and by anybody, be it a really big business, a small business or friends and/or family.
It is never ever nice to get into debt whatever the situation may be or whoever you many owe money to. Debt can happen to anyone at any time. It doesn’t discriminate and it certainly doesn’t care who you are or what your background is. All it can take is one bad decision and you stand to lose everything. Mind you, some people get into debt through no fault of their own. The is the worst thing that can happen to you.
How and Why People Get into Debt
People can get into debt for all kinds of reasons. It could be because they took out a credit card and used it for all sorts of things. However, what people don’t realise is that with a credit card you are spending the bank’s money rather than your own. Therefore, at some point the bank will want it back and they usually charge interest on top. If you spend more money than you should on the credit card eventually you will end up in massive debt. This can have a knock on effect for people in the near future, as they end up not being able to afford to do some of the things they want to do.
Another way people get into debt is by borrowing money than they can afford. If for instance you take out a bank loan of £1,000 but you later realise you may not be able to afford it, then you probably shouldn’t have taken out that loan in the first place. Mind you, at the time some people are desperate and therefore are not thinking about whether they can afford to pay back the loan or not. You should only borrow money you know you can afford to pay back. That’s just common sense though isn’t it?
Some people simply love or tend to overspend. They spend more money than they need to spend and they buy things they either don’t need or can’t afford. For instance, you want a really nice top of the range sports car which is really expensive. You know deep down y=it is out of your price range but you buy it anyway probably to impress your friends and neighbours. Why try to impress people you neither know nor really care about? Anyway, if you can’t pay back the money for the car, then you will end up in real trouble.
Not paying your bills is another way people get into terrible debt. If you have bills outstanding and you haven’t paid up, then the bills just mount up and it all adds up. Therefore, it always helps to pay bills and credit cards on time, so that you don’t get into any difficult situations. If for whatever reason you can’t afford to pay a certain bill at the time, such as a phone bill or gas and electricity bill, t. The walk to the provider and set up a payment plan but explain your situation clearly and assertively. The worst thing you can do is berry your head in the sand and hope it will simply go away, because it won’t. If anything, ignoring the letters and phone calls only gets you in deeper, because if one day bailiffs come knocking on your door, you won’t know why and that can cause a real issue.
People also get into debts by gambling constantly, although gambling is an addiction that not many addicts have any real control over. Nonetheless, if you are gambling constantly then you will eventually end up doing thins to feed that habit. This may include taking out loans on borrowing money. Unfortunately the problem arises when you have to pay back the debts accumulated by your gambling. The deeper trouble gambling gets you into the harder it is to come out of it.
The Emotional Effects of Debts
Debt can often lead to depression, anger, frustration, desperation and despair. The reason for this of course is because people are often left wondering what to do now. They don’t know how or why they got into this situation, or some people do know but they don’t know how to get themselves out of it. Being under constant financial pressure can be ever so emotionally draining and overwhelmingly stressful.
Being in debt also creates fear because you are always fearing the worst. You are worried about bailiffs coming to your house to remove your things and throwing you out onto the street.
You get to a point when you are too afraid to answer the phone and/or front door, or to open letters. Why? Because those bills are simply mounting up and the letters you are likely to receive a going to be threatening. They will be saying what cause of action they will take unless the outstanding balance is paid. You also fear answering the phone because you are frightened that it will be the creditor you owe money to threatening to take whatever action required. You may also be frightened of answering the door because of course a bailiff could be standing outside.
Some people become so desperate that they will do anything to get out of the financial problems they are in. Including: selling all their possessions such as: clothes, gadgets and jewellery. s their houses, cars and businesses. Fleeing the country, armed robbery, faking their own death and in some cases omitting suicide. None of these things is a solution of course. However, you get to a point where you are so desperate that you will do anything.
In a nutshell debt cause a emotional strain as well as a financial one. Constantly worrying about where the next bill will come from, or whether or not you can afford to do things causes such emotional turmoil for the debtor. The emotional turmoil stems from the worry about how they will pay their outstanding debt or debts. It also causes confusion more than anything else because sometimes you don’t know which bills are important and which bills you should leave for another time.
The Physical Health Effects of Debt
I have just outlined the emotional effects debt has on people, but is anyone aware of the physical health issues debt causes? When you are in debt, you are under constant immense pressure because the bills are just mounting up. You are unsure about how you will pay off those bills. Having threatening letters coming through your door and threatening phone calls can often be too much for the person to handle. This therefore leads to having a stroke, heart attack or other really serious health problems. The reason for this is because all that stress, worry, anger and frustration causes your blood pressure to rise significantly.
Many people in debt have sleepless nights due to the uncertainty of what the future holds, as well as where and how they will find the money to pay off these awful debts they are in. Not being able to sleep due to debt of course causes tiredness and mood swings. Being tired also causes dizziness, clumsiness, fainting, cold and flu, headaches etc. Therefore, it really helps o clear any outstanding debts you may have, in order to prevent these physical health issues.
Other people tend to go off their food when they are in debt because emotionally they simply don’t feel like eating. They end up losing their appetite and nothing they eat, or is put in front of them seems at all appetising. Food suddenly becomes low on their priority. Unfortunately, this causes horrible health problems because you end up losing a lot of weight due to this. You also end up lacking the energy to do things, because you’re not getting the vital nutrients and minerals you need. Not eating properly causes pretty much the same problems as not sleeping properly. In the sense that you are tired, dizzy, clumsy and end up rather unwell.
Not eating properly due to debt can also cause nausea because you often feel as though you are going to throw up, even if you have nothing to be sick with. This isn’t good because you end up potentially damaging your esophagus, which connects your throat with your stomach. Therefore, if you are constantly vomiting you also end up damaging your windpipe and your heart.
You can also end up constipated due to not eating properly or at all. I know debt can be very awful for the person concerned. However, not eating properly due to debt causes a real problem for your bowels. Not getting enough food causes infrequent bowel movements or hard stools when you do go to the toilet, or try to at least. This therefore makes you constipated because your bowels aren’t moving as frequently as they should due to lack of food in the body. If left unchecked it can cause some really serious health issues later on.
What I am trying to say is that debt is a really devastating situation to be in and has awful effects not only on the debtor but on their families both emotionally and physically. If debt isn’t dealt with then you can therefore become very unwell both physically and mentally.
Who Gets into Debt?
Anyone from any background can get into debt. It doesn’t mater what your employment or education status is, what your finances are, who you are, or your age, gender, disability, sexual orientation or religion. In a nutshell debt doesn’t discriminate and can affect anyone at any given time. Like I said in my earlier paragraph all it can take is one unpaid bill or a really bad decision and before you know it, you end up in huge debt. The problem is, once you get into debt it is very difficult to get out of it.
Many people believe it is only poor people on benefits who get into debt. This actually couldn’t be further from the truth. It is a total myth that it is only unemployed people who experience financial difficulties. Some people can be very rich and still end up in debt. For instance, you could be runing a very successful business, but then the business fails for whatever reason and you end up out of pocket and in serious financial trouble.
You could have a really high flying job that you are doing really well in, but the you suddenly get made redundant. You then find that all the bills are mounting up and you lack the money to pay them off. This can be really sole destroying for the person, because they have gone from having a really successful job or business, to being in real debt and being unable to afford to do anything. In retrospect, you are left wondering where you went wrong and what you could have cone differently.
You could also have a very high powered job which you are doing very well in. Suddenly you are made redundant and you try getting another job similar to the one you had before. However, you have been unsuccessful in doing so. Meanwhile the bills are mounting up and you are unable to pay them. It is never in debt at any time. Particularly if you once had a really high powered job, or tan a really successful business. Suddenly you then end up having financial difficulties. That can feel like a real blow and can really ruin someone’s pride as well as their self confidence. It is also really sole destroying, because you are left wondering where on earth you went wrong.
What Advice Can Debtors Seek?
There are a number of things people can do if they find themselves in debt. For instance, they can go to their local Citizens Advice Bureau to seek advice. Whilst they are there, they can talk to someone who knows a bit about debt and can advise them on what to do. They can also go to debt charities if they feel they are at risk of becoming homeless. Either one of those places can give advice on what to do and how to manage your debts.
If it is affecting you emotionally and physically then you can seek advice from a medical professional such as: a doctor, counsellor, psychologist, or psychiatrist. You can also discuss your problem with your social worker if that helps. This is because they can point you in the right direction and have the capacity to advise you on what to do. If you prefer, they can probably talk to the person you owe to on your behalf.
You can seek advice from your family. In fact, your family are likely to be the best people to go to because they are in more of a position to help you. If I were in debt, I would certainly ask my family to help me. Then again, I wouldn’t want to put them under any financial burden or put that strain on them.
Friends can also help and advise debtors on how to pay off their debts and who to talk to if need be. The reason for this of course is because like the person’s family, they know the person best and are therefore in a position to help. I know debtors may feel embarrassed about telling friends and family about their debt problems. Nonetheless, the longer you keep it to yourself the worst you make the situation for yourself.
Conclusion:
Debt is debt no mater how big or small. The sooner you sort it out the better, if not it just gets worse and worse. There’s nothing more to be said, because I have already said it throughout this article. All I can say is that finds you whoever you are, even if you move address or emigrate to another country debt still tracks you down. There is absolutely no running away from it unfortunately. Debt will always be around and there will always be people with money worries. However,,, if you try looking after your money properly, you pay all your bills and loans on time, you don’t by things you can’t afford, don’t want or don’t need, or you don’t overspend then you will be financially healthy.
With money there was be liquidity it comes and goes. There’s absolutely nothing wrong with spending money on what you want or need of course. Some people are too stingy and never ever want to put their hand in their pocket. They even get upset if they so much as have to spend £10 which is taking it a bit too far. However, there are some people who go to the other extreme and must always spend, spend, spend. The minute they see something in the shops they must always buy it, even if they don’t need it, don’t want it or can’t afford it. That’s no way to manage your money.
There must be a balance when it comes to managing money, just like everything else in life. Spend too much and you will find yourself in serious financial trouble. Spend too little and you will be known as being stingy and selfish. There is a saying that goes: “look after the pennies and the pounds will look after themselves.” Well yes that’s true, but don’t be too afraid to spend money. Neither should feel the need to spend all the time. Learning to strike a balance in all aspects of your life is the way forward.
