Understanding The Rise Of Debt In Modern Society

Problems of personal debt are at an all-time high, and things have been problematic for a long time. 

Following the smartphone revolution and internet-based banking, borrowing is easier than ever before. Couple this with the fact that people can also make major purchases with the tap of a screen, and it’s easy to see why there’s a trend in the wrong direction. Of course, technology isn’t the only reason. Mental health issues are also on the rise, with an estimated one-billion people worldwide struggling. 

Something needs to be done, but first, a basic understanding is required, and that’s what this article seeks to address. Let’s dig into the issue of debt in modern society. 

The Types of Personal Debt in a Nutshell

Personal debt comes in many different flavours. 

One of the most common is credit card balance and the associated high-interest: people borrow more than they can afford, and as the debt goes on, the worse the situation becomes. 

Then, there are student loans. Education costs are extremely problematic, especially in the UK, and it’s now taking longer for graduates to establish themselves because of it. 

Mortgages and borrowing associated with housing have also become a much more difficult pill to swallow, leaving many people to struggle to even afford the home they live in. 

Someone could be facing issues associated with each of these all at once. 

Economic Pressures and Easy Credit

The cost-of-living crisis is considered one of the main drivers of debt growth. People who were coping well ten years ago are now finding it difficult to buy food and maintain their properties, leading them to take out loans that are becoming increasingly difficult to pay back. A big factor here is that wage growth has stagnated, lagging behind the aforementioned price hikes. 

There’s now also a greater availability of digital credit platforms, which make big purchases quick and easy. It becomes a vicious cycle, with people being lured into these payment schemes because they’re struggling to afford things, only to be cast out of the frying pan and into the fire.

Psychological and Social Impacts

Debt is far from a purely financial issue – there are many psychological and social implications to consider, too. 

Evidence suggests that debt can cause significant problems within the family setting, with those going through it experiencing so much shame that they refuse to speak about it. They avoid tough but necessary conversations (Alex Kleyner, National Debt Relief CEO, talks a lot about this issue). 

There’s also the influence of social media. People are bombarded today with hundreds of influencers pushing products of all kinds on their platforms, and for those who are stressed and using purchases to help ease their mental state, this can be extremely damaging. 

Wrapping Up

Hopefully, you now feel you have a better understanding of some of the main issues surrounding debt in modern society. This article by no means covers everything, but it’s a start. 

There are solutions to each of the problems discussed above, so if you, a friend, or a loved one is affected by debt, know that there’s always a way forward. 

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