Not facing reality
One of the fatal financial mistakes members of the middle-class make is not dealing with the reality of their money matters. Instead of confronting your escalating debt, you prefer to stick your head in the sand like an ostrich. If you don’t acknowledge it, it will go away. At least, that’s what you think (or hope) might happen. Unfortunately, that’s not how it works. Pretending you’re not in financial trouble only makes the problem worse.
If you’ve overextended yourself in terms of debt, but you do nothing about it, the vicious cycle will perpetuate itself. You’ll make more deficit to service existing debt. Your whole life will become about working to pay off debt that paid off other debt. That’s not a quality existence.
It might not be the most beautiful experience, but you might need to consult a financial adviser and lay your cards out on the table. It can be hard to admit you’ve messed things up by living beyond your means. But think about the alternative. Better to tell a consultant who can help you before you lose it all.
Money problems can become marital problems. They place enormous pressure on a relationship. The strain can become so high that the relationship breaks down.
If one of you is pretending your finances are fine when they’re not, you can drive your partner to a tipping point. This is something you want to avoid. If the relationship breaks down to the extent that you get divorced, it’s a sad situation emotionally. But, not to sound cold, it’s an even sadder situation financially. It will only increase your debt and your monthly expenses. To avoid this eventuality, seek financial help before things go too far and nothing can be salvaged.