If you are on benefits, or a low income, you may find that you just don't have enough money to cover what you need to spend. When things are bad in the economy, you are more likely to lose a job or to have to make do with less benefit money.
There are some common things in life that can push you into debt – or make an existing debt worse.
Major life changes
You may lose your job, lose a loved one, break up with your partner, orthere may be times when you have to borrow money, or stop paying bills, to cope with a new situation.
Staying unwell – or getting worse
Mentalor physical illness can push someone into debt. If you lose your job – or have to spend a long time off work – you won't have so much money and you may actually have to spend more on paying for prescriptions, travel to health services or trying to find work.
Not getting paid
Your benefits may be changed, missed or even stopped.You may not be claiming all the benefits you can.
Living on a low income
If your income is below the average, you are more likely to get into debt in the first place.If you have to live on a low income for a long time, your debts can mount up because you have to replace essential items. Eventually, you may find that you just can't get by without borrowing money,
Buying new things
Sometimes you just need to buy an essential – like a washing machine. Some types of problem – likemania– can mean that you have spending sprees and buy lots of stuff that you don't need.
Ignoring the bills
If you are mentally unwell you may stop seeing people, find it hard to concentrate, find it hard to communicate or just find it too much to think about money and bills. You can easily get into debt from just ignoring paperwork and bills.
Pressure from outside agencies
A bank, or a loan company – or even a loan shark – can encourage you to take out another loan - perhaps even to pay off an existing debt - or to get a credit card. If your credit card limit increases, you may feel that it's safe to spend more.
Creditor knowledge
You may feel that your creditors don’t understand the effect of your mental health on how able you are ableto control your money. For instance, if you have 'manic spending sprees', they may see these as simply fraudulent and not give you the help you need.
