Debt -
Debt: When Responsible Lending Becomes a Social Responsibility
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As things get tougher in the midst of credit crisis there are those who bear the brunt of the problem much harder than others. They are persistently embarking on frivolous spending sprees not because their purse or bank account is so full of money that needs to be squandered somehow, but because they just have to spend. They are endlessly borrowing to keep a lifestyle that they involuntarily have adopted and strive hard to sustain. In the process they get into trouble with their banks and other sources of finance. And they are compelled to shape up or to look some other ways to ship out of the troubled waters – with suicide sometimes becoming a likely option. In some instances they try to pay off, if they can afford or run off to wherever they feel help might come handy. These are those few who are the real victims of debt, who find various sources of amassing debt at their easy reach and can hardly say no, in spite of their peculiar medical condition.
In recent times, experts have researched the problem of excessive spending and found that there are, in fact, people who happily go on spending spree even by borrowing and when they are sure they have no means of repayment. This situation is linked to a mental disorder which has been defined, in most cases, as Bipolar disorder. This affects at least one per cent of people in the UK and sufferers often exhibit extreme mood swings. It is believed that they become so depressed that at a high phase or manic level they suddenly set off on shopping spree, carting cars, and computers or even going on expensive holidays, running into several thousands of pounds.
Since the decision was in the first place irrational, they often end up regretting. At a low phase they become more depressed and staying at home often, while refusing to answer phone calls or even read their mails, fearing that they would be reminded of the obvious – their debt. And the final decision would be to resort to taking their own life. Or at least seek help where they could.
It is believed that bipolar disorder is aggravated by worsening financial situations like unemployment and the lack of means of sustenance. An expert at the Royal College of Psychiatrists, Chris Fitch argues the people with mental health problems are usually on low incomes and they experience high unemployment rates. They, as such, live off state benefits, which is usually anything but sufficient. For this class of people “borrowing money or not repaying can often feel like the only options,” he explained.
Pathetic as their condition is, lenders often do not take adequate precautions to understand their plight and refuse them easy access to credit facilities. Even if the mainstream ones do, they are very likely to find a willing source in doorstep lenders.
One victim, who is a comedian and writer, Stephen Fry calls for a proper understanding of their travail as he explains his own experience with the medical condition. His own bipolar condition had caused him to go on several giddy spending sprees, he says, even as reminds that people with mental health conditions are hardly in any employment because of the stigma associated with the problem. They are, therefore condemned to perpetual want and could hardly be eligible for credit from credible lenders other than the exploitative doorstep lenders.
With household debts hitting nearly 10 thousand pounds, averagely, excluding mortgage, experts including charity groups are urging people to treat those who are vulnerable with more understanding. If nothing else they should at least be reminded of the trouble they are walking into as they pile up debt. This will even save lenders the trouble of having to chase borrowers who can’t afford to make repayment in the end.
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