Other reasons for debt
Compulsive shopping and
gambling, which are highly addictive habits, are often a cause of debts.
While excessive shopping is a compulsive behavior more common in women,
gambling is an addiction that is more prevalent in men. People who suffer
from these addictions find themselves in debts that grow rapidly and
quickly become unmanageable.
Gambling Addiction and Debt
From state lotteries to race tracks, arcade game parlors, and even sporting events and the Internet – gambling is now a high-profile, socially acceptable phenomenon. Many people rely on credit cards, personal loans or overdrafts, in order to manage both gambling costs and living expenses. The vicious cycle of gambling, losing, and then gambling some more in the hope of that ‘big win’ has the power of turning a leisure activity into an addiction. Internet gambling is adding to the problem, with approximately 1,700 gambling websites available on the Internet, interactive television and mobile phones.
The gambling industry has grown tenfold in the U.S. since 1975. Almost 15 million people display some sign of gambling addiction. The statistics relating to gambling are alarming:
- Two-thirds of the adult population placed some kind of bet last year
- Gambling among young people is on the increase: 42% of 14-year-olds, 49% of 15-year-olds, 63% of 16-year-olds, 76% of 18-year-olds
- The average debt incurred by a male gambler is between $55,000 and $90,000 and $15,000 for female gamblers
- The average rate of divorce for problem gamblers is nearly double that of non-gamblers
- The suicide rate for pathological gamblers is twenty times higher than for non-gamblers (one in five attempts suicide} [Source:www.overcominggambling.com].
As per data released in July 2008, most of the callers to the 1-800-GAMBLER help-line in West Virginia, were married, had full-time jobs and were at least high school graduates. Most of their callers said that they often don't pay their bills or have to borrow money to gamble. In the last couple of years,
a lot of people have lost their house or car, or spent insurance settlement
money or their inheritance on gambling [Source: http://www.herald-dispatch.com].
Shopping Addiction and Debt
Shopping has emerged as a favorite pastime
in America. Easy availability of the latest products along with the
onslaught of advertisements has fuelled this trend. Credit cards and
store cards make spending money easy and the presence of mail order
catalogues and the Internet make it all the more easy to give in to
the temptation. Shopping addiction or ‘shopoholism’ is when one
spends too much on goods and services that they ‘want’ rather than
actually need.
There are several reasons for such destructive impulses such as fear, depression, emotional emptiness and low self-esteem. It’s a build-up of anxiety that needs to be released. Women seem to fight this unhappiness by buying items of clothing, perfumes, make-up, and jewellery. Men lean towards buying electronic gadgets, cars, and watches. These are typically considered as goods related to
self-image, implying that shopping addiction and status anxiety are
closely related.
The major fall-out of such impulsive shopping is rising debt. When you spend money you don’t have by utilizing credit, your regular bills and credit card balances may not get paid leading to increased interest rates and penalties.
There are a number of ways to overcome this problem, including:
- Being honest and accepting
that there is a problem.
- Speaking to those who can offer moral support. Organizations such as Debtors Anonymous (http://www.debtorsanonymous.org) can offer resources and support to combat
this addiction.
- Sticking to shopping lists that contain only what you “need", not what you "want".
- Facing up to the consequences, such as uncontrollable debts, by getting in touch with agencies like CESI who can help manage the debt.
Whatever the form, the effects of addictions such as gambling and shopping are immediately crippling. You can get help for this addiction through organizations
such as Gamblers Anonymous . It is almost pointless to deal with current gambling debts, only to build them up again in no time. It is necessary to seek professional help for you to understand how to manage your money. At CESI, we have trained counselors who can offer help and practical advice on how to deal with your debts.
