The Effect Of Debt Problems on Family Life
Don't Let Debt Depression Destroy the Family
Nov 28, 2008
Money problems arise for a number of different reasons. Most people experience debt problems as a result of a fundamental change in life circumstances such as an illness, bereavement or the loss of a job. Others experience debt problems because of addictions and 'comfort' spending.
Chief Executive of Mind, Paul Farmer, said: "Money worries aren't just keeping people awake at night - they are causing high levels of stress, depression and in some cases self-harm and suicidal thoughts."
Money Problems and Debt Depression
According to a survey by Myvesta.org, it was found that "49.3% of people with problem debt can be classified as depressed. Of those, 39.7% report symptoms of severe depression. In comparison, studies have shown that 9.5% of the general population is clinically depressed."
Debt depression seems to affect women more than it does men. The Myvesta.org survey found that "58% of women reported mild and major signs of depression, compared to 36% of men."
Whilst there is no doubting that money problems do cause debt depression, the situation is made worse by the fact that most people have no experience of dealing with debt. Debt is worrying and a terrible burden, but it isn't life threatening.
Get Debt Counselling and Become Debt Free
Debt counselling can help someone with money problems become debt free. A sense of perspective regarding debt problems can be gained and practical debt solutions and sources of money saving advice identified.
The first step to becoming debt free is by producing a breakdown of incomes and expenditures. This will allow a debt counsellor to help identify where savings can be made. Monthly outgoings are broken down into priority and non-essential bills.
Whilst priority bills, such as the mortgage and council tax, must be paid there are many areas of social spending where savings can be secured. For example, money can be saved by getting a remortgage, renting out a room or stopping smoking.
Changing social spending is often enough to tackle debt problems as the money now available helps balance the monthly bills. If this still isn't possible, the debt counsellor will work with the client to identify the right debt solution.
Dealing with Debt and Money Problems - Finding the Right Debt Solution
Debt solutions are available to deal with both minor and serious debt problems. Minor debt problems can be dealt with through: administration orders, Debt Management Plans and offering creditors full and final settlements. Serious debt problems can be negotiated through bankruptcy or an Individual Voluntary Arrangement.
Providing the debt counsellor with all the information eluded to above will assist in deciding which debt solution is right for the individual. No matter how bad things may seem, there is always a debt solution. Get help with debt and if debt depression is a problem it is worth consulting a General practitioner (GP).
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