The slippery slope of debt
This section is based on the typical experience of debtors facing financial problems. At whatever stage you are on the slippery slope you are not beyond help, however, it is best not to leave it too late.
- Stage 1: Debt trigger (e.g. sickness, marital breakdown unemployment, lost
orders, cash flow, redundancy, etc.)
- Stage 2: Initial missed payment and creditor pressure.
- Stage 3: 'Robbing Peter to pay Paul' - taking out additional loans leading
to:
- Stage 4: Multiple debts and multiple pressure.
- Stage 5: Contact with creditor - promise to repay (usually unrealistic amounts
due to fear/guilt/pressure).
- Stage 6: Broken promises to creditors resulting in increased pressure (e.g.
debt collectors).
- Stage 7: Diverse personal reactions, e.g. denial (ignoring problems), depression,
frustration, anger.
- Stage 8: Legal pressure - letters from solicitors, court summons (often ignored)
court orders often leading to bailiffs action and then agreeing to
unrealistic repayments.
- Stage 9: Financial chaos.
- Stage 10: Debtor facing sanction from priority creditors e.g. seizure of furniture/equipment
by bailiffs, disconnection of utility supplies, loss of home, potential
imprisonment.
- Stage 11: Further loss increasingly possible e.g. marital breakdown, domestic violence, deterioration of physical health, partnership/director disputes, mental breakdown.
EFFECTS OF DEBT
Debt can affect everyone in so many different ways. We have heard grown
men and women cry in our offices and over the phone. Others have tried
to commit suicide, we are all different and handle situations in various
ways. The most common reactions are:
"I feel more relaxed at 6pm or at weekends"
"I feel so embarrassed"
"I feel so helpless/failure"
"It's not that I don't want to pay"
"This has caused a real strain on our marriage"
"I've lost two stones with all the worry"