Excessive Debt

Debt isn’t something people realize affects children as well as adults. After all, children aren’t the ones who have to pay the bills. They don’t have to stare at the credit card statement every month. So, how is this a threat to the family?

When debt is a problem in a household it spills into everything else, including the family. Children’s Society did a survey about children and debt and this is what they found.

The report reveals the numerous ways that debt affects children's lives:

Bullying - Children in families with problem debt are more than twice as likely to be unhappy at school and be bullied because they don’t have the same things as their friends.

Worry - More than half of children (58%) in families with problem debt say they worry about their family’s financial situation

Family - Half of children in families with problem debt (47%) say it causes arguments in the family.

Going without - Nine out of ten families in problem debt say they have had to cut back on essentials like food, clothing or heating for their children in order to keep up repayments.

Early exposure to debt - More than half of children aged 10 to 17 said they saw advertising for loans ‘often’ or ‘all of the time’. But only one in five children said that their school had taught them about money management and debt.

There are laws and policies out there to help families battle debt. One is the The Fair Debt Collection Practices Act (FDCPA). The FDCPA forbids debt collection companies from using abusive, unfair or deceptive practices to collect past due debts from you.

Children’s Society suggest that regulators should make sure that creditors have ‘early warning systems’ in place, so they know when their customers are facing financial difficulties and offer advice and support. Earlier and wider access to debt support and advice could help families put the brakes on a downward cycle of debt and reduce the impact on children.

There are several resources and ways for families to help get a hold of their debt. The most popular and (for me personally) a great way is the Dave Ramsey method. His website at  http://www.daveramsey.com/home/?snid=home offers help, advice and motivation for family struggling with debt. 

My husband and I had $35,000 in debt when we got married. It was difficult for us and caused a strain in our marriage, but we buckled down and got to work. We took it one step at a time and worked nonstop to rid ourselves of the chain of debt. We actually followed the Dave Ramsey plan and became debt free 11 years later. It was a long road, but it's worth it. 

Getting out of debt is possible. It's not easy and and take a long time, but the benefits are great, not only for you, but for your kids. They  learn about money management, problem solving, setting priorities, and accomplishing long term goals. Your bond as a family will grow as you work together to get through this trial. 

https://www.lds.org/media-library/video/youth-curriculum/11-november?lang=eng