What are the consequences of debt?
Know where all money is going
There are several reasons why some people find themselves short of money:
- poor budgeting
- unexpected spending
- birth of children
- job loss
- poor health
- gambling or drug addiction
- divorce
- fraud
Any of these can lead to debt which can lead to very serious consequences.
Owing money to a family member, friend or bank can be very stressful.
The consequences of debt can be serious:
- bankruptcy
- loss of property
- further debt
- crime
- social stigma
- stress
- depression and mental illness
- physical health effects
- loan sharks
How can people protect themselves from fraud?
It is common for an individual to find themselves short of money if they are the victim of fraud.
If someone steals a credit or debit card or steals someone’s identity, they can spend their money.
Stay ahead of fraudsters
- Keep track of any cards at all times.
- Don’t give away financial information on social media.
- Do regular personal credit checks.
- Follow the bank's security procedures and don't tell anyone the PIN.
What are some investment scam red flags?
Where can people get the best financial advice?
With any financial decisions or products, it’s important to get the right advice.
Consider the following before making any financial decision:
- the more independent the source, the better
- ensure that the source is credible, that is, they know what they are talking about
- read widely about the products to get more than one viewpoint
- contact an independent financial advisor
- use comparison sites which compare all the financial products in the market
- be informed about the trading standards that financial retailers must meet
- get support or advice by calling consumer helplines and organisations such as the Citizens Advice Bureau (Advice NI in Northern Ireland)
- speak to close friends and family, who will have no doubt made difficult financial decisions - what’s their advice?
Getting the right advice is the best way to protect against fraud and to make the most of any money.
What laws are in place to protect consumers?
Watch: Making important financial decisions
Watch this video about making informed financial decisions
Narrator:
Money doesn't grown on trees. Money makes the world go round.
A fool and his money are easily parted.
Doe, dosh, spondulicks.
There are countless words and phrases to describe money.
That's because whether we like it or not, money is one of the most important aspects in everyday life, affecting everything from the clothes you wear, to the food you eat and the house you live in.
Learning to manage your money is one of the first steps in adulthood.
And while it may seem daunting at first , it will soon fall into place if you stick to a budget.
Unless you're as rich as say the Kardashians or a premiership footballer you should learn to live on a budget.
It's as simple as working out your income and your outgoings - to ensure that there isn't a shortfall n money and making sure your essential bills are covered - such as electricity, heating and food.
I love food.
A budget allows you to carefully plan your spending, avoid worrying about finances and save for the things you really want, like new shoes, for example, or, I don't know, an army of space monkeys. (Why do I not have an army of space monkeys).
There are several reasons why people find themselves short of money.
Poor budgeting, unexpected bills, increase in the size of family, poor health, meaning you can't work - addiction such as gambling, drugs or alcohol.
Any of these can lead to you falling into debt. Which can be really difficult to pay off, leaving distress and worry. This can be avoided by keeping a close eye on your outgoings and learning to save.
You should aim to save around 20% of your income, a financial safety net is really important in case of emergencies. For example, if your boiler breaks down or your car needs to be replaced.
So when the unexpected happens you've got it covered.
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