Reports of more and more personal debt and a record number of bankruptcies and insolvencies make it clear that money is becoming a big problem for thousands, if not millions, of people.
Most of us think of "money problems" as "debt problems," and paying off large amounts of debt is a major source of worry and stress for those of us who may have borrowed too much in the past.
There is another problem with money that doesn't get as much attention. It's called "Financial Phobia," and it's a real medical condition that causes a lot of trouble for people who have it.
Recent research suggests that up to 20% of adults have a full-blown case of financial phobia, and that nearly half of the population shows some signs of a milder case.
People with this disorder find it very hard to keep track of their money because simple things like opening bills make them feel anxious, sick, and in the worst cases, have full-blown panic attacks. They won't want to check their bank balances and won't pay their bills on time. In the worst cases, they won't even open their mail and will throw it away rather than deal with what's inside.
So, what makes this happen? One of the main causes is a feeling that one's finances are out of control. This can be caused by debt, but it can also be caused by a bad experience with money, like losing money on a bad investment or taking bad advice. People who buy bad products from banks can lose trust in banks and, by extension, in all of finance.
The irony is that people who don't pay attention to their finances tend to make things worse because they don't notice problems when they start. For example, missed payments can go from being a small problem to a reason for legal action if they are not dealt with.
As their financial situation gets worse, they feel like they have less control over their lives. This can lead to a cycle of problems, including full depression. Is there a way out of this?
As with all real phobias, if the problem has gotten out of hand, counselling and professional financial help from debt counsellors, which is often free from charities, may be needed.
But people in the early stages of the condition can stop things from getting worse by starting to get their finances back in order, resisting the urge to ignore the problem, and taking steps to deal with any underlying causes, like debt.
