There are many reasons that people end up in debt.
In some cases, poor borrowing decisions lead to a cycle of debt that is difficult to get out of.
Unexpected expenses can also disrupt your finances and lead to large debts.
But one reason that we don’t discuss as often is addiction.
Addiction and debt go hand in hand and overcoming drug addiction and debt can be incredibly difficult.
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Drug addiction makes it incredibly difficult to hold down a job, so most addicts have been through a long period of unemployment.
Even those that do manage to find jobs will often lose them as a result of their addiction, and it is difficult to convince future employers to hire you once you have already been fired for drug use.
Drug testing also means that you may lose jobs, even if your drug use is not immediately obvious.
Many addicts fall into drugs when they are young, so their education suffers and their job prospects are very limited, which makes them more likely to be unemployed.
During these periods of unemployment, addicts will turn to credit card companies to fund their addiction, as well as their normal living expenses.
Their addiction is their only focus, so long term financial planning is not a concern and debts quickly build up.
If addicts are able to hold down jobs for short periods, this allows them to continue getting credit, but at some point, credit card companies will no longer increase their limits, and without any means of paying off their debts, they look for other ways to borrow.
Payday lenders are far more flexible about who they will lend money to, and so many addicts will use payday loans once they can no longer borrow on credit cards.
This is a very easy way to get into a cycle of debt because, when the payment is due on last month’s loan, you can just take out another.
Payday loans are deposited in your bank on the same day in many cases, which means that addicts have instant access to money to buy drugs.
This makes overcoming drug addiction and debt incredibly difficult.
If somebody is able to overcome their addiction and start putting their life back together, they still face a lot of financial hurdles due to the massive debts that they built up during their addiction.
However, there are ways to deal with that debt and get back on track.
If you are dedicated to overcoming drug addiction and debt, but you do not know how to deal with your difficult financial situation, you need to look into different debt relief options, like bankruptcy and consumer proposals.
We can take you through the details of each option and advise you on which is best for you, based on our assessment of your situation.
If you need help overcoming drug addiction and debt, get in touch today.
You can reach us by phone or fill out an evaluation form and we will get back to you.