These days people are used to spending on credit and this is the reason why the level debt is on such a hike. According to the current research done by moneysavingheroes.co.uk, people with higher debts are on the rise because of the unchecked spending habits and also people face expensive divorces and breakups which can be pretty dilutive, and in the worst-case scenario bad gambling habits can be deteriorative too. it also showed that most of the people are super worried that they may never be able to come up from their financial condition and in many cases, it may take almost around 10 or more years to pay off their debts.
Effects of excessive debt
These days debt and excessive owing can be disastrous not only for one’s financial conditions but also can harm one’s health and mental conditions. Excessive debt at higher interest rates lead to excessive costing of a product which costs way less, and also it can force one borrow from their savings and future funds. It can ruin relations and family binds and can also ruin external relationships. Having too much of amount as debt can lead to unattained life goals as one might not be able to fulfill their life objectives like owning a home and children’s education.
It is found that the conditions can be so damaging that they end lying about their financial conditions from their partners and family by having secretive bank accounts so as to hide the debts. Most of the people fear that they may never be able to clear out from their debts as they might have relied way too much on overdrafts, credit cards, and loans which are expensive to pay off. One-third of the surveyed people said that they have debt loans equivalent to £10,000 or more whereas the rest have average £6,500 as debt still pending.
The main reason
According to the research, only 1 person in 10 who have overdrawn their one or credit cards have said that they repay their monthly credit card dues in full and rest don’t which is the biggest reason why the rate of impending debt is so sky high.
Credit card is without any doubt the biggest reason why people are in debt and the second biggest reason being the store shopping cards. Unchecked spending through plastic leads to buying things which one cannot afford financial thus leading to bigger debt pits.
Among other reasons has been divorce, gambling, overdraft, and unemployment. As said by George Charles of moneysavingsheroes.co.uk, debt is inevitable and one will owe to financial institutions but when one pays off their debt in time and when one takes a loan or overdraw their cards only in an emergency then it is not a problem. However, the biggest problem is when people choose to lead an expensive lifestyle which cannot afford or take bad financial decisions which cannot see an end to.
One can take financial budgeting help from experts to keep a check on one’s debts and can also make sure the credit cards have spending caps to limit one’s spendings.