At Moolr, we have talked about this topic before, but we thought it best to revisit. Debt will become an increasingly common problem for millions in the UK in the coming months. Many of us will have to navigate through significant financial difficulties. We take a look at the social stigma of debt.
Living as we do within this increasingly unstable 21st century economy, it is a sad reality that more and more individuals are unfortunately finding themselves having to cope with financial problems. Granted, debt is not a new phenomenon by any means, It has always existed, but to me it seems worse than ever. And it is about to get much worse, due to factors out of our control. The relatively recent analyses into its effects on a person’s well-being has brought a new level of understanding to just how damaging it can be. This is especially so if not handled correctly. Financial stress breeds further, more strongly-embedded personal problems. If not tackled correctly, they can have profoundly crippling consequences.
The fact that debt makes people unhappy should be no big secret. It would be disingenuous to assume otherwise. But just how severe is the extent of the damage that can be caused? What can happen when one finds oneself increasingly faced with the grim spectre of monetary woes? Well, in its broadest sense, it’s pretty severe. A 2010 Guardian summary of an investigation carried out by the CCCS (Consumer Credit Counselling Service) emphasised that an average eight out of ten people claimed that debt was negatively impacting their personal lives. The range of problems reported amongst respondents were many and varied. They included deteriorating personal relationships, health-related issues, and impaired workplace performance. This should really come as little surprise. Having constant worries about your financial status looming at the back of your mind is certain to distract even the hardiest of individuals.
There is one aspect of debt that is doubtlessly responsible for the ongoing nature of such personal issues. It is the way that monetary imperfection has become increasingly stigmatised within a community dynamic. People have come to view debt as emblematic of an inability to cope with the real world. And as such there are very few people willing to seek professional debt help and advice. Advice that could really kick-start an escape from their situations. Nobody wants to be seen as asking for help. Nobody wants to be seen as weak by their friends and peers. This outlook is something that only serves to make the negative effects of financial stress even more damaging. That in turn makes a proper recovery an even more distant goal. Another now extinct side effect of this social stigma that is just as detrimental is that it gave rise to new lenders.
The old payday lenders that the FCA soon got rid of. Monetary woe was their golden ticket. By luring in the vulnerable and debt-stricken, they were able to take full advantage of the situation. They offered a “lifeline” that more closely resembles a financial death sentence than it does any real escape.
The appeal of such companies lies in their discreet nature. People can for example take out popular debt consolidation loans in an attempt to solve their debt problems. Now you can do this from the safety of your own home. This could be by telephone or over the internet. Moolr don’t look to source loans for all. t has to be a one-off, and the right option for you. Those in particularly unenviable financial situations see this as the best course of action, but for some it is perhaps the worst. If more and more people were able to look past the social stigma that is unfairly attached to debt and its related issues, then more and more people would get the real debt solutions they need.