Look for signs


 

A combination of factors may trigger new debts or worsen existing ones.

Looking out for these debt signs can help prevent a crisis.

 

Major life changes. These include job loss, relationship breakdown, bereavement, or any ‘big’ disruption in circumstances where individuals borrow money or stop paying bills, to cope with their new demands.

 

Onset of illness. Mental and physical illness can trigger debt, both for people with mental health problems and carers. Incomes may drop (e.g. resultant job loss), and expenditure can also rise (e.g. prescription charges, or travel costs to health services).

 

Low incomes. Individuals on lower than average annual incomes are more likely to have outstanding debts.

 

Income disruption. Benefit disruption is a common form of this, as well as not claiming all the benefits a client is entitled to.

 

‘Low-income grind’. Living on a low-income for long periods, debts can accrue. Eventually, the overall burden of debt becomes too great.

 

Spending and new purchases.

Spending can be exacerbated by mental health problems (e.g. mania and spending sprees). Lots of new purchases may provide a clue.

 

Ignored paperwork. Debts can be ignored or pile-up if individuals withdraw or find communication difficult.

 

Creditor pressure. This can be through pressure to pay debts, automatic credit limit increases or lender ‘sales persuasion’.

 

Creditor knowledge. People may say that creditors don’t understand or take into account their mental health (3). They may be wrongly seen as difficult or fraudulent customers and not get the help they need.

 

 

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© 2009 Royal College of Psychiatrists