Debt and Credit.

I had Emmerdale on in the background yesterday evening as I replied to some of my e-mails. It seems that Simon’s mother (Lesley) has got their business into a right mess and they are on the verge of financial ruin. It got me thinking about the lure of debt and how it traps people in a downward cycle. I have experienced the power of debt and the feelings of hopelessness that it causes. When I worked for a fast food company I contracted salmonella (from an undercooked piece of chicken I ate in a new store in Birmingham while helping them out with their opening). That led to months of sick and living on SSP. Even though I was prudent during that time I ended up with an overdraft in excess of one months income. These are some of the things I noticed about debt:

• It creates a feeling of helplessness.
  You can’t see a resolution to your problem and so you lack motivation to get out.
• It serves its self.
  Once you are in the trap it becomes increasingly difficult to get out because the charges mount and left on it’s own it increases, getting bigger and bigger until you can’t manage it.
• It creates promise.
  Debt sustains its self by promising you that it is manageable. It tells you that you can have what you want now instead of waiting for it. The promise is to provide you with what you want but the reality is that the debt creates a profit, not for you, but for someone else.

Aside: If you are reading this because you are in debt there are ways out. Credit Action exists to help people get out of debt. They have really helpful advice on their website: www.creditaction.org.uk