The Implications of Debt Management

Life can be expensive and one solution that people have come up with is to take on debt to afford things that they need to be able to carry out a normal life without necessarily having to worry about housing or education. Taking on debt is not so scary in itself, but it can be a conduit of negative emotions and there are several proven ways to address these feelings that often become a form of depression. First, let’s take a look at why people have debt in the first place.

Why Do People Have Debt?

Some societies promote debt as something logical to follow. In Western Europe and North America, the term “credit rating” is a way to gauge whether someone who is going to take a debt will then repay the debt.  As a result, banks will urge their consumers to accept credit cards so that they can assess whether a person is capable of returning what they have spent. This is where debt begins. We live in a world where nearly 77% of American households are caught in debt.

This means that 1 in 10 people carry some debt load, whether through credit cards, mortgage payments, or education fees. That is precisely why we have debt today. Many of the things that we find essential in life come with a big IF-clause. They include:

  • Education
  • Healthcare
  • Home Ownership

All of these are rather expensive and to make sure that you have any of those in a reasonable timeline, you need to take the money now, when you are in your 20s, in order to be able to pay all off by the time you are in your 40s. It’s the way the world works.


If you were to save up and buy on your own, that would come with other issues, such as not having anywhere to live. Putting yourself through higher education is already hard, but without the debt you take on to pay off your college tuition fees, education becomes an elusive goal.  The world is built in a way where debt is not so much a burden as it is a way to quickly get ahead. For the most part, these reasons are great to take on some debt.

People Take Debt for Entertainment Reasons

One of the biggest drivers of debt generation right now is that people love to spend on entertainment. Plain and simple, people would love to spend on new clothes, new toys – whether those are cars or guitars, or something else – without asking themselves if they can afford it.  Debt is there to satisfy those needs. Sometimes, we simply get carried away. Of course, enjoying your hobbies is perfectly fine to do, and sometimes, taking debt is not a bad thing. For example, people who love gambling online with real money are usually very good at managing their money.  They know how much they can afford to spend on their hobby and that is why they don’t often run into debt over their gaming.

Of course, there are those that do and once this happens, it’s quite important to think about how to manage your debt.  After all, a debt over entertainment is not so bad if you don’t get carried away and can be quickly tackled. However, that’s when a new issue emerges and it may interfere with your ability to manage your debt. That is debt depression

What is Debt Depression and How to Handle It?

Managing debt is not a problem in itself. You just need a plan and a timeline and stick to it without faltering. Debt depression is considered the state of despair when you are thinking that you will never climb out of debt.  Some people feel the compulsive need to immediately sort out their debt, but they find it impossible, which brings them pain and discomfort. However, there are ways to manage those negative emotions.  You should stay active and avoid focusing on the moment. It’s important to maintain your mental health and there are many ways to address that. Apart from staying active, you should also face your fears and ask yourself – is debt that bad? The sum total is big, but this doesn’t mean that you must pay it all at once. Quite to the contrary, you can pay off in installments and save something on the side.

Debt may be scary and it may provoke negative emotions, but debt is a part of life and it shouldn’t weigh you down. Focus on the present and act smartly about your debt and, before you know it, you will have smashed it!

In his 40-plus-year newspaper career, George Morris has written about just about everything -- Super Bowls, evangelists, World War II veterans and ordinary people with extraordinary tales. His work has received multiple honors from the Society of Professional Journalists, the Louisiana-Mississippi Associated Press and the Louisiana Press Association. He avoids debt when he can and pays it off quickly when he can't, and he's only too happy to suggest how you might do the same.