How high debt levels can affect your life

Over recent years the level of consumer debt in the UK has rocketed, and many people have found themselves sinking deeper and deeper into a pit of seemingly never ending debts and repayments. Although this can seem manageable for a period of time for many people debt can quickly spiral out of control, and this can lead to massive problems in many areas of your life. Although debt problems are mainly a financial issue this type of problem can also have a knock on effect on many other areas of your life, and this is why it is important to tackle debt problems head on and as early as possible.

The effects of debt problems can really take their toll on your life in many different ways. Although lenders and credit and finance companies are now tightening up on their lending criteria somewhat, over recent years it ha become increasingly easy for consumers to get credit, and this is what has led to what seems to be a never ending cycle of debt for some consumers, who have borrowed and borrowed over the years and found themselves up to the neck in debt.

You will find that debt problems can hit home very suddenly – one day you may not even be aware that your debts have become a problem and then suddenly you realise that your debt problems have spiralled out of control. At this stage many people just bury their heads and try to pretend that there is no problem to deal with. However, this is the worst thing that you can do because you could find your life affected in many ways.

Amongst the problems that can be created by debt problems that are not addressed are:

• Strains on relationships with family members, friends, and loved ones. Money problems can be the cause of a great deal of strain and arguments in relationships, and the worse the problem gets the more strained relationships can become.
• Adverse health effects. The worry and stress of money problems can lead to enormous stress issues, and this can start to impact on your general health, leading to mental and physiological health problems in some cases.
• Depression. It is easy to sink into deep depression as a result of money problems and high debt levels if you do not take action and sort these issues out.
• Spiralling debt. If you fail to take action you will probably find yourself borrowing time and time again just to keep on top of your debts, and this will lead to more debt, more stress, and more problems until the situation become impossible to manage.
• Court action and credit report damage. If you continue to ignore your debt problems you are likely to start missing repayments somewhere along the line, and this can result in damaged credit, which can have financial repercussions over time. You may even find yourself facing court action if you fail to deal with your debt problems and end up unable to make your repayments.
• Repossession. If you are a homeowner you may find that even if your debts are all unsecured your financial problems could eventually lead to you struggling to keep on top of your mortgage repayments and this could eventually lead to your home being repossessed.

Solutions

Being in high levels of debt is not just a money related problem but also an emotional problem, as this type of situation can have a profound effect on your emotions and mental state. There are professional debt counsellors available to help you to deal with the emotional stresses of debt, as well as to help you with the more practical side of dealing with your debt issues. There are also many solutions available to help those in high levels of debt these days, from information arrangements with creditors and debt management plans to Individual Voluntary Arrangements, and in extreme cases even bankruptcy.

You do need to ensure that you identify your debt problems as early on as possible, as the earlier you do this the more options you will have and the easier it will be to put some sort of arrangement in place to help you avoid the pitfalls of spiralling debt. Something as simple as consolidation of your debts could help to ease the situation without having any negative impact on your credit, but the longer you leave your debts the more chance they have of getting out of control and affecting your credit, which means that options such as debt consolidation could disappear because of your negative credit.

There are many different debt agencies around to help you to find the best solution in terms of dealing with your debts, thus enabling you to reduce the risk of spiralling debt, health problems, relationship issues, and the other negative impacts of serious debt issues.

Helpful links

National Debtline - 0808 808 4000
Citizens Advice Bureau
Consumer Credit Counselling Service - 0800 138 1111