A lot of debt advice concentrates on the practicalities of debt problems and solutions. However most advice overlooks one of the most important and difficult factors: Why did you get into debt in the first place?

Different Routes to Debt Crisis

When you look at the reasons why people have go into debt, I think it is possible to split them into two groups, those thrown into a debt crisis situation by things outside of their control (or the actions of others such as their spouse) and those that have been to some degree or other reckless.

“Blameless debtors” would include those in debt as a result of ill-health, redundancy, or the accumulation of debts by a partner/family member without their knowledge.

“Reckless debtors” would include people that habitually spend beyond their means. Perhaps they took out a much bigger mortgage than they could really afford. The sort of people that are always driving the latest car and wearing the latest fashion who might be the envy of their friends, but in reality everything is going on the plastic. If their spending habit is really out of control they might be able to get themselves into a debt crisis situation without any external influences. Less reckless debtors might be able to keep going as long as nothing goes wrong, but as soon as they suffer any drop in income they are in trouble.

You might be interested to know what kind of debtor I think I was. The answer is somewhere in between. I had always used credit and paid it back, but I gradually started to use it a bit too much. I then suffered redundancy and had to accept a job paying a lot less money. This was enough to tip me over the edge.

What Should You Do About Your Debt Habit?

If you think you are a “blameless debtor” then there is nothing to do but wish for better luck in the future.

If you feel that in someway you were responsible for your debt situation then you might want to consider whether you have any personal issues (e.g. low self-esteem) that have contributed to your desire to spend money. Some people spend money to help them deal with depression or low self-esteem. Seeking advice with these issues could help to prevent you getting into debt in the future.