Anya Hawkins's blog : The Impact of Uncontrolled Debt on Your Family

Debt can be very difficult to manage; getting yourself into a position where you can afford the repayments and not incur more overdue charges can feel like an impossible task. However, it can be achieved with help and support from the right professional. It is essential to seek the proper help if you're in debt, as debt impacts you and everyone around you. In this article, we look at the impact of debt on your family.

Depression and anxiety

Debt can lead to depression and anxiety. Owing money and the risk of losing your home and belongings is a terrifying experience for anyone. All of the extra stress and pressure can lead to symptoms of depression or anxiety. When individuals have depression or anxiety, they are likely to have a low mood, reduced energy, feelings of dread, trouble sleeping, overeating or undereating and many more stressful symptoms. Each of these symptoms impacts close family members. When you’re down and don’t want to do anything, your family also feels the pain, worry and stress. Kids could miss out on meaningful experiences, and all of your family members may feel on edge when you’re together and unsure how to help. If you’re suffering from depression or anxiety, you must get help from your doctor. If your depression or anxiety is because of debt issues, putting a plan together to control and manage your debt can help to ease the symptoms and reduce the problems you’re having.

Physical illness

Debt can aggregate underlying physical conditions, making them worse or causing flare-ups. If you have a condition such as arthritis, Crohn's disease or diabetes that you manage through ongoing medication, diet or supplements, debt can make the issue worse. Debt causes a high level of stress in most people, and this stress hormone leads to problems with existing conditions. Stress has even been linked to new lifelong issues in people with an existing predisposition. Minimising stress levels in individuals with underlying physical conditions is extremely important for managing these conditions. Physical conditions can lead to the inability to work, and this can result in debt, which can make the condition worse. Physical illnesses will impact your family around you; they may need to look after you or change their plans to accommodate your illness. If you’re in a situation where you can see yourself getting into debt because of a physical illness, it is important to get advice and help before the debt worsens your condition.

Living conditions

If your debt gets to a point where you need to move in with your family or move your family to a smaller house or flat, this will considerably affect their lives. Getting your debt problem under control will help minimise the impact on your family's living conditions.

Getting help with debt

If you’re in a position where managing your debt has become too difficult to control, you must get help. An IVA or Debt Relief Order can help you manage debt and minimise the impact on your mental health, physical health and family circumstances. An IVA or individual voluntary agreement is a formal, legal agreement between you and your creditors. This agreement puts a plan in place to help you pay off your debts over a period of time. An IVA can help with stress as it stops creditors from contacting you directly, and you will only need to pay one payment that is affordable for your situation. An IVA can last 5-6 years and helps you pay off all of your debt in full. A Debt Relief Order stops you from paying certain types of debt for 12 months. After 12 months, these debts are completely written off. Both an IVA and a Debt Relief Order can reduce your debt payment and make it easier to get out of debt and move forward with your life. Debt is incredibly consuming and can significantly impact your physical and mental health, it can be hard to see a way out, but there is support available. Your family’s well-being and circumstances will also be impacted by debt, so make sure you take action for them. If you are in debt that you can’t manage, it is essential that you seek help from a professional.