This post looks at how you end up being in debt. It is based on my own experiences of being in debt and how my own personal situation came about.
Everyone is different so what I write might not apply to you but I would think that some things will be similar to your own situation.
The Build up to Debt
For me my debt came about as a result of being irresponsible with credit, sprinkled with a seasoning of gambling addiction. The two combined had serious consequences and I am now in a lot of debt.
The gambling side of things accounts for around half of the debt I am currently in today. The problem was that I didn’t really think about what was happening until it was too late. I ignored what was going on, in an attempt to win back the money I lost. Unfortunately this only made things worse.
The other half of the debt I owe was my due to my irresponsible use of credit and a desire to spend money I didn’t have. Because I couldn’t see the value of the money I was spending, I didn’t think about how I would pay all the debt back.
The tipping point
There usually comes a point where your debt becomes too big to handle and it becomes difficult to manage. For me this took some time but once it happened I had to make some difficult decisions. A change in circumstances such as the loss of your job can also be a factor.
I had reached the tipping point when I started missing payments on my credit cards and loans. I was also taking out payday loans to make ends meet and then rolling these loans over. This only compounded the situation and put me further into debt.
The Denial
Next we enter the stage of denial. This is where we don’t accept the situation we are in and pretend everything is ok even though it isn’t.
We ignore the late payment demands, the phone calls and block out any thoughts of what the situation means or what could happen as a consequence.
Debt collection letters remain unopened. If you can’t see it then the problem is not there type of attitude. However the problem was there and was waiting to take over.
The Realisation
Next we realise that we are in debt. This is usually where the seriousness of the situation hits us and we start to feel either stressed or worried about the problem.
You will either continue to ignore the situation making things worse or you may seek help or perhaps even sort things out yourself.
The cycle is complete and you are now in debt.
Getting Help with Debt
If you are currently at the realisation stage of your debt you might be thinking about how you can get things sorted.
Listed below are some posts on this blog which can help you with your debt problems.
You can also visit the Debt Help section of this blog. There you will find information about different organisations who can help you with your debts.
Your turn
When did you accept your debt problems? How did you get into debt? Please let me know in the comments box below.
