Problem debt often wields a lot of control over our lives… more than we might admit to ourselves, or even realise. As mounting debts increase and fall into arrears many of us descend into a cycle of bad decision-making, which only seems to exacerbate the problem.
Studies suggest that stress can influence the decisions we make and may even diminish our perception of the gravity of those decisions, which goes some way to explaining some of the statistics in the infographic below, produced by the Wallet Doctor.
In general 63% of people don’t seek debt help in time (with 40% struggling to cope for at least a year), and very often they continue to borrow in the hope that their circumstances will change and they can pull themselves out of debt.
This is compounded by the range of high-cost financial products available, such as payday loans, whereby many debtors only serve to dig themselves deeper into debt — which is demonstrated by the alarming fact that 65% of people with a payday loan owe monthly payments that exceed their total monthly salary.
By being honest with ourselves and realistic about our financial situation we can make more reasoned choices, long before things get out of hand.