Some of the statistics surrounding personal debt are staggering. The average household owes £54,197, including the mortgage. And, £163 million pounds is added to personal debt in interest every day. Some of the unsustainable debts are written off but for most people it is a struggle to keep ahead of the curve and maintain regular payments. But, despite this fact credit card purchases continue to grow. With redundancies being a fact of life, many people are now looking at repossession of the family home and young graduates are starting out on their working life with debts as much as £30,000. It is little wonder that living with debt has become the norm for many people in the UK.
The Detrimental Effects of Living with Debt
Living with debt may appear to be simple as long as the economy is growing and you have a steady job. However, if you owe a lot of money it can take only one small factor, such as an illness or loss of your job, and the debt – which could be as little as a repayment of a payday loan – will soon reach a point when it becomes unsustainable. Lack of money is one of the main factors in the breakdown of relationships, and it can be accompanied by loss of your home and your other possessions.
Debt should have never become an acceptable way to live in a modern society. There is always the threat of an interest rate hike that can soon make a debt difficult to pay. Once you are on that slippery slope with interest and fees accumulating fast you can soon find yourself in deep trouble. There may be something to be said for going back a step to a time when you had to save for something you wanted (not needed). Most people could live without relying on credit if they tempered their spending habits and saved up a sum of money to deal with unexpected emergencies.
Debt also causes stress which can lead to illness. There is a direct link to debt stress and depression. The best way to avoid this situation from arising is to rein in your spending and make cash purchases whenever possible. If you have accumulated a lot of debt there is help available from debt management services, the Citizens Advice Bureau or by approaching the company that you owe. Getting out of debt and living within your means may not appear to be an attractive proposition especially when your neighbour has a new car or fancy holiday. But, do you really need to have the latest smart phone or a new tablet?
Coping with Debt: First Steps
Reducing spending is the first step to coping with debt. The habit of debt addiction can be beaten if you consider the fact that material goods are just that. It is not necessary to have the latest fashions or consumables to have a fulfilled life. Despite what the advertisers tell us, the latest smart phone watch is not a necessity. If you can imagine a life without debt you can take the next step towards achieving that goal. Living with debt can be an isolating experience but there is help available. Look on the Internet for advice about reducing debts and beginning a new life without the constant worry about how you will meet the next payment.
In order for a society to function properly its members should not be under constant pressure to conform to spending habits that are really only suited to the very rich. By changing from living with constant debt to living in a way that you can afford you can take the first steps to achieving a life that is not filled with stress. If the UK IS a society addicted to debt it can be changed and you can be one of the first to achieve this aim.
Read more about the history of online loans and credit here.