Debt generates a great deal of emotion, it is probably one of the main causes of the breakdown of relationships and not just between husband and wife but also family members and friends. The emotions around debt include frustration, shame, embarrassment, anger, disappointment, even condemnation of self.  Whilst debt is often a personal matter it is outside influences which can cause the situation to spiral out of control, by the reduction in overtime, redundancy, a change in family circumstances.

Debt generates a great deal of emotion, it is probably one of the main causes of the breakdown of relationships and not just between husband and wife but also family members and friends. The emotions around debt include frustration, shame, embarrassment, anger, disappointment, even condemnation of self.  Whilst debt is often a personal matter it is outside influences which can cause the situation to spiral out of control, by the reduction in overtime, redundancy, a change in family circumstances.

People blame the banks for allowing easy access to credit, but debt is down to the individual person.  Admittedly if the credit card limit hadn’t been so high, maybe the debt situation wouldn’t be so bad, ultimately saying no or refusing to use the card would have been the sensible course of action, unfortunately when money is tight a card seems so attractive and offers a way out.  However, at some point in the very near future, the card will reach its limit and then what?

The internet and TV together with newspapers advertise who to go to for help with debts, but very few recognise the importance of understanding what emotions there are around debt and how damaging being in debt can be to a person, as well as the person’s family.

What can be done? Debt needs to be spoken about whatever the cause whether it is acceptable or not.  All too often shame and embarrassment stops people from talking and sharing their experiences.  If that could be changed there would be much more openness, especially as the amount of personal debt in the UK is greater than what the whole country produces in a year according to statistics provided by Credit Action in January 2011.

What can be done to create the change?  Financial education would be a good way to start, what parents are teaching their children is money doesn’t matter, just use a card, to pay for goods and get cash!  When asked where money comes from a lot of children say the cash machine, they don’t know otherwise.

It is also imperative children and adults are taught the importance of budgeting, unlike the expectation of the last 10 plus years when it has been instant gratification. Teenagers as young as 18 have £10k of credit card debt.  You also have parents unable to support their children through university because they have been unable to save causing the children to have to choose between further education or going to work?  The two questions which need to be answered by those children are will there be work for me now or in the future and do I go to university and build up debts or not?

Everyone has a responsibility to educate themselves on how to manage money and there are books and games which give a great deal of insight into how money works and how it is possible to become financially independent.  There are also companies actively working to get the word out to families how important financial education is.

Unfortunately until sufficient numbers are educated and understand the how to manage money, there will continue to be families who suffer the emotional trauma debt causes.