The Misery of Personal Debt

There are a number of factors that cause personal debt. Each factor contributes greatly to the misery that personal debt brings. Taking each cause in turn, one has to look at society as a whole. Society, more so than at any time in the past, has made it easier for people to build up personal debt.

With buy now pay later deals within many stores, one can immediately see that the temptation to purchase is always there. Of course, with such deals there are many people who act irresponsibly. They completely forget about whether they can afford to pay back what they have just bought through higher purchase deals. And so they spend money that they believe is theirs, and as if it is going out of fashion.

Moving on to credit cards, these act in exactly the same way as buy now pay later offers. Although credit cards are extremely handy for when one does not have spare cash in their pockets, the ability to be able to purchase with a card is tempting in the extreme. Credit cards save on having to carry around loose change, and so that is the other bonus too.

However, as mentioned above, there have been many people in the past who have been stung by credit cards. In fact, in the wrong hands, credit cards can become like lethal weapons. This is because some people completely forget that whatever they purchase has to be paid back.

The trouble with credit cards is that many people believe it is ‘free money’, when this is not the case at all. The Annual Percentage Rate placed on credit cards, kicks in when someone is late in paying back their credit card bill. This rate can be ‘fixed’ which means the percentage rate stays the same, or it can be variable, in which case the APR can rise.

This means that if someone is late in paying their credit card bill, then the APR will kick in. Of course having to pay back not only the original bill, but the APR on top of that, is something that could have been easily avoided. Furthermore, a person who is late in paying back their credit card bill will mean a bad credit rating will go against their name. 

Other causes for personal debt could be a marked reduction in income. Where someone may have been in employment – paying off their bills with no problem, all is well. But when it suddenly ends, and unemployment hits, then debt inevitably builds. Divorce can also see personal debt soar, as both parties wrangle over who gets what.

Court costs plus divorce fees can spiral, and cause personal debt to build. Poor money management and lack of savings also contribute greatly to the build-up of personal debt. Medical fees can see personal debt soar, too. Each hospital or doctor visit can cost, and this can see many people fall under the weight of medical fees.

The gambling trap can also see personal debt spiral out of control. In fact, trying to win back money that has been lost through other sources such as unemployment, or health problems are one of the worst kinds of debt, and can see people plummet into the depths of despair. Alcoholism is another cause of personal debt, when trying to fund a habit such as drugs, drink or gambling.

It is evident the causes of personal debt are many. However, with a little self-control, and good money management, one can beat debt once and for all. It will mean planning ahead, getting finances under control, and sorting out just what debts have to be paid right away, and what debts can be put on the back-burner, for the time being.

Sort debts out in the order of importance and become informed about the many debt consolidation companies that will help. Other organizations, such as the CAB (Citizens Advice Bureau within the United Kingdom) will also help with sorting debts out. Their service is free, and there are huge numbers of people who use their services, as one can imagine. 

Personal debt is destructive, both mentally and physically, and in terms of health and state of mind. Also, it is one of the main causes of suicides. But, as mentioned above, it can be defeated. With determination, self-control, learning good money management and a little knowledge about just what and who is out there who can help, debt can finally be beaten.