There are some common things in life that can push you towards debt, or make existing debts worse.
Big life changes
You may lose your job, lose a loved one, break up with your partner, or there may be times when you have to borrow money, or stop paying bills, to cope with a new situation.
Long term ill health
Long term mental or physical illness can push someone into debt. If you lose your job – or have to spend a long time off work – you won’t have as much money and in addition to this, you may have to spend more on paying for prescriptions, travel to and from health services or trying to find a new job.
Not getting paid
Your benefits may be changed, missed or even stopped. You might find that you are not claiming all the benefits that may be available to you.
If your income is below the average, you are more likely to get into debt. Having to live on a low income for a long time means debts can mount up just to buy essential items. Eventually, the debt can increase to a point where just can’t get by without borrowing money.
Buying new things
Sometimes you just need to buy an essential – like a washing machine – or for others it can mean that you have spending sprees and buy lots of stuff that you don’t need.
If you’re preoccupied with gambling, spending more and more time and money on it, chasing losses, or gambling despite serious consequences in your life, you have a gambling problem which can lead to more debt.
Ignoring the bills
If you are mentally unwell you may stop seeing people, find it hard to concentrate and communicate or just find it too much to think about money and bills. People can easily get into debt from just ignoring paperwork and bills.
Alcohol and drug misuse
If you’re spending a lot of money on alcohol or drugs you may find you need to borrow more to pay for essential items which can lead to debt.
Pressure from outside agencies
A bank, a loan company or even a loan shark can encourage you to take out another loan, perhaps to pay off an existing debt, or to get a credit card. Sometimes credit card companies increase limits, making you feel that it’s safe to spend more.