Hidden costs of debt
Being in debt doesn’t just hurt your bank balance. We look at some of the other possible side effects of financial problems.
According to a survey by the Consumer Credit Counselling Service (CCCS), more than 80 per cent of people with debt believe their financial problems have a negative impact on other aspects of their lives including relationships, career and health.
Delroy Corinaldi of CCCS said: ‘There is a lot of focus on the economic implications of the personal debt crisis but we are only starting to understand the human cost of debt problems.’
The CCCS also pointed out that only 15 per cent of respondents had found themselves in debt because of reckless spending. Almost half had experienced problems because of redundancy or a pay freeze. Others attributed their money problems to having children, the breakdown of a relationship or ill health.
We look at some of the non financial consequences of debt.
Relationships
More than a third of those surveyed revealed debt problems have had a negative impact on their relationship with their partner.
These findings are backed up by research from the Post Office which found that more than a fifth of Brits with debt lie to their partner about the amount they owe.
If you are worried how your financial problems are affecting your relationship, check out ‘Handling your love life and your finances’.
It isn’t just romantic relationships. The CCCS also found that 22 per cent of people had experienced problems with their children as a result of their debts.
Career
Although debt might seem to be a problem in your personal life, constant anxiety about money can also spill over into your professional life. Two thirds of respondents reported that money problems undermine their ability to do their jobs.
For some, financial problems were so severe they were often unable to afford petrol for their commute.
Of course, worrying about debt could be a distraction at work. In some more extreme cases, however, debt problems could also cause you to lose your job or prevent you finding employment.
Some employers in the financial services may ask for proof you are financially stable before making an offer of employment. Others include a clause in your contact requiring you to inform the company of serious financial problems.
Health
A staggering 94 per cent revealed debt problems were having an impact on their health. Some 46 per cent claim the effect had been ‘very negative’.
Debt-related health problems include nervous breakdown, heart palpitations and hair loss.
Don’t suffer in silence
If debt is affecting your life, there are organisations that can help. In addition to the Consumer Credit Counselling Service, you could get in touch with agencies such as the Citizens Advice Bureau or National Debtline.
To learn more about where you can go for advice about your money problems, see ‘My top ten websites for financial help’.
**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**
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