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Effects of debt on families

Early Lessons – well, some may view it as a positive side note on debt. As many as half of children aged between 10-18 interviewed, admitted to take more interests on adverts concerning loans. They also admitted that their school had equipped them with some knowledge on money management and debt.

Overall effects of debts on families

Medical costs

Families struggling to keep up with or pay off debt may experience an impact on their health. This is because of the extreme stress and anxiety by the chief family bread winner. People who are under extreme stress are also more vulnerable to ulcers and stomach problems as opposed to those with little or no stress. Anxiety attacks were also recorded to people with high debts accumulation.

Workplace limitation

According to a study done by SKY News UK”,individuals facing financial problems with their families can affect their job output too. These thoughts linked with negative perspectives and mindset might lead to lack of concentration at work, missed days and lower performance index in the workplace. Some of these may have grave consequences for the business and everyone in general.eg a long distance truck driver driving under stress, is a risk not only to the company he works under, but also to other road users

Resentments

Debt is rough on anyone — especially when it encroaches on your marriage, partnership, or family. A spouse or partner may resent the other as a way of coping with debt. It isn’t uncommon to blame your partner for coming into the relationship with more debt, losing a job, or not making enough money, or spending habits that may have led to debt.

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The debt trap

The debt problem as a major media house called it”,is increasingly hitting hard on middle income families. House Holds Budgets are under strain. Families with extra dependents are more vulnerable and caught in some form of dilemma. On one hand, they have to implement some cutbacks while on the other hand; they have to at the very least not affect their children’s lifestyle in any way. This also makes them more exposed with reduced abilities to cope with sudden financial shocks e.g. redundancy, reduced hours or illness.

To deal with this, many families are opening up more and more to creditors to make ends meet. The numbers keeps rising each year, and as of last year a third of all families have had to borrow money from lenders to pay for essentials for their children in the last year.

This often marks the beginning of the debt trap as credit repayments begin take up a larger proportion of income and families find themselves cutting back on essentials.

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