Ultimate deception - Why do people don’t accept they have debt?

Americans lie about their debt mainly because of the social stigma associated with it. According to a recent survey, US citizens lie about their credit card debt by around $400 million. One-third of Americans feel humiliated to accept that they have various types of debt. Out of these one-third Americans, students and young people feel deeply ashamed to talk about debt, especially about credit card debt.

Why do people hide their debts?

Most people don’t talk about their debt since they feel guilty. They feel ashamed. One in ten US people say they lie out of fear and insecurity. They feel that their friends and relatives won’t approve. Friends and spouse would look down upon them. Somewhere down the line, they would be regarded as failure.

Debtors know fact very well - the problem is not with credit cards. The problems lies with them. They are using credit cards carelessly to escape from troubles. They use credit cards as a device to fulfill their emotional needs. Correction. It’s not even about needs. it’s mainly about wants.

It is scary that most people with debt are not talking about it openly in front of their loved ones. This may cause severe damage to relationships.

The bitter truth is that people find it harder to discuss about debts than sex. They don’t like to talk about their troubles and problems. According to Marian Friestad, Ph.D., professor of marketing at the Lundquist College of Business at the University of Oregon, money plays a great role in our life since it helps to lead a comfortable life. It is used to measure the value of people.

Read more: Warning signs that you are drowning in debt

Social stigma is a big reason behind the ‘hide and seek’ game. People still look down upon those who don’t pay back their creditors. So, debtors don’t even feel comfortable talking about their financial problems with their relatives. They want to show everyone that everything is normal in their life. They don’t feel comfortable in admitting that they are in debt. And, unless they admit they have a problem. They can never solve it.

Debtors want to look smart and in total control of their lives in front of neighbors. As such, they are not ready to accept their incapability of managing finances. Again, many people are not even aware of their problems. They don’t look at their credit card bills and are ignorant of the fact that trouble is looming over their heads. Reality sets in when their next credit card application or loan application is rejected.

The emergence of ATMs has made money easily accessible. Many people don’t keep track on their money like they used to during the time of using checkbooks. Debit cards have made it equally easy to spend money without thinking about the problems that may crop up in future.

Conclusion

The only way to avoid debt issues is through financial education. People need to know the proper ways to manage credit cards and money. They need to learn the art of budgeting and the ways to save. Right now, most people only know about how to consume money today. They are not planning for their financial future.

Are you in debt? Are you hiding your debts just like others? Please don’t! Instead, call (800)-530-OVLG and share your problem with OVLG’s financial coach. He will help you to solve your problem and live with a smile on your face.

See: The Consequences of not being honest about Assets in a Bankruptcy Case