The Impact of Debt on Children

No one loves the idea of serious debt, although many adults throughout the country struggle with it every day. It’s pretty obvious that crippling debt can have a negative impact on debtors in terms of stress, relationships, and satisfaction in life. But many of us never consider the impact of debt on our kids.

Discussions are Important 

Regardless of the reasons behind the debt, rest assured that significant debt can affect the wellbeing of children. It’s important for parents to deal with their own stress, while at the same time helping children to cope with their perceptions and concerns. That’s because—according to psychologists– kids who grow up in lower income homes or in homes with substantial debt are more susceptible to mental health issues. Although they are not responsible for the financial situation their family is experiencing, children say they feel guilt, anxiety, stress, and embarrassment. Meanwhile, parents often are struggling with the same feelings, which means relationships between adults become strained, further impacting the kids. Talking as a family about the situation—obviously gearing the subject matter toward the appropriate age level—can help.

• Ask your kids how they are feeling. Teach them healthy ways to express emotions, especially if you’re noticing changes in your children’s behavior, sleep, or eating habits. Let them know that being scared is okay.
• Explain the situation and your plan. Acknowledge that money is short, but let them know that you still have choices, and you are working on steps to improve the financial issues.
• Reframe the situation by helping kids see things in a more positive light. Letting kids know that, although things look dire, you’re going to get through it as a family, can provide the reassurance they need to let you handle things.
• Get help managing your kids’ stress. Grandparents and friends may be able to provide support. Perhaps a school counselor or psychologist could help with matters, or, if things escalate, other affordable mental health care should be sought.

Now Deal With the Debt: Is Bankruptcy the Right Move?

Do you need a fresh start? If you have been crippled by debt, filing for bankruptcy could be the solution you’ve been praying for. No more creditors banging on your door. No more piles of bills weighing on you. Yes, there are absolutely sacrifices to be made—but it could be the best way to get out from under the burden of debt—freeing you and your kids to begin anew.

The Help You Need 

The experienced, trustworthy Miami bankruptcy attorneys at The Law Office of Julia Kefalinos can help you put your financial crisis behind you. To discuss your situation, schedule a confidential consultation in our Miami office today.

Source:

americanbar.org/groups/public_education/resources/law_issues_for_consumers/everydaylaw0/personal_finance/bankruptcy/pros_and_cons_of_bankruptcy/