How To Recognise When Someone Needs Help With Debt
Family or friends may hide their financial problems because they are scared or embarrassed about what other people might think. Many people leave it until the last possible moment until they seek advice for their debt. Here are some tips for identifying when someone needs help with debt.
Previous episodes of debt
When someone gets into debt, it can be very difficult to get out of debt. Debt spirals and accumulates more charges as time goes on. People who have been in debt in the past may not see how serious debt can be and can easily fall into a situation where they owe money again. If someone has been in debt in the past, they can be more susceptible to getting into similar trouble in the future.
Secretive behaviour
One common sign of debt issues is secretive behaviour or avoiding talking about their finances. People often feel ashamed if they are in debt and don’t know what to do about the situation; this can lead to secretive behaviour or avoiding talking about money or finances. If your partner or friend avoids conversations about money or hides statements or letters coming through the post, there might be a debt issue that they need help tackling.
Selling their belongings
If your friend or family member is attempting to get themselves out of debt, they might start to sell their belongings. Selling valuable and necessary items such as cars can signify that they’re trying to pay off their debts. Other belongings people might consider selling are large TVs, expensive clothing and jewellery, musical instruments, cameras, and even their house. If you see a friend selling many items, they could need help or advice for potential debt.
Overspending
If a friend or loved one constantly spends on their credit card and never considers their purchases, they may have an issue with debt. If you often see them buying things for other people or going out and spending large amounts of money regularly, there could be an issue with debt and denial. If you know their income level and spending habits don’t match what you assume they could afford, they could have a debt issue.
Underspending
Another sign that someone might need help with debt is if they change their spending habits and cancel holidays or stop doing things they enjoy. If your friend, family member or loved one stops contacting their friends and avoids all social activities, they could be dealing with a debt issue.
How to help
If you’ve identified that someone you care about might be struggling with debt and you want to help, there are a few things you can do to get them to open up about their issues. Bring up the subject directly and assure them that there are ways out of debt and you want to help them if there is an issue. You could also talk more broadly about the subject of debt and suggest they search for IVA advice or help from a professional who can reduce their debt and create a plan of action to get through the process.
Your friend or loved one might be in denial about their debt issues and refuse to talk to you about it; this is a common response. If this is the case, you help by talking about free advice they can receive confidentiality and referring them to charities that can help with their debt impartially. You might want to help them get out of debt by paying off some of the money they owe or agreeing to be a loan guarantor. Be careful and make sure you protect yourself in these situations, it can be very hard to get out of debt, and you don’t want to put yourself in a similar position. Many family members and friends fall out when owing each other money. If you're going to help them in the long term, suggest they seek professional debt advice or gift them a sum of money to help with their debt if you can afford it. A gift of money will prevent you from falling out if they are unable to pay you back for any money you lend them.