The Effects of Debt on Family Life
Debt problems undoubtably place immense strain on family relationships and can cause damaging effects to the mental and physical health for all family members if not dealt with effectively.
In a time where the mental health of children and young adults is under the spotlight, the Children’s Society have expressed concern about the negative effects that debt can have on children. Research found that children growing up in families with debt problems are five times more likely to be unhappy than those in families with no debt trouble. With an estimated 2.4 million children living in families who have fallen into debt trouble, this is a worrying issue.
Family debt troubles can mean children miss out on socialising, school trips or sporting clubs, leaving them feeling isolated from their peers. More worrying is that nine out of ten families experiencing debt problems said that they had to cut back on essentials such as food, clothing or heating. When children see their parents distressed by their financial situation, they can feel a sense of failure for not being able to help, lowering their self-esteem which can then impact on other areas such as their education.
Financial strain can make for a stressful home environment due to the pressure of a barrage of letters and phone calls, and even the threat of losing the roof over their head. Because of this, half of families claim that their intense situation has caused arguments within their family.
Seeking debt advice early can help to reduce the mental and physical effects of debt problems. Solutions such as the Debt Arrangement Scheme (DAS) in Scotland can reduce stress by freezing interest and charges, safeguarding key assets and preventing creditors from taking further action. By seeking professional advice, those whose debt is unmanageable can change their situation and repay their debts in a much more controlled, efficient way. The aim is to create a manageable budget that takes into account the needs of the family and helps people work their way to a debt-free and happier future. Our advisors are highly experienced and will take the time to talk through the options available. The initial consultation is free of charge.