The Cost of Gambling and Other Addictions

Work to recover financially and personally from addictive behaviors. Keep the following in mind:

• Take action to regain financial control as a result of addictive behaviors. For example, in households with a problem gambler or substance abuser, traditional financial advice, such as “keep open communication between spouses,” may not work. Instead of sharing joint financial accounts, spouses of those with addictions may need to set up separate accounts or limit the addicted spouse’s access to money (for example, direct deposit of income and hiding or canceling credit cards).
• A priority, in addition to limiting access to assets and income, is repayment of debts caused by an addictive behavior. Experts in addictive behaviors suggest putting a line item in a family’s spending plan for debt repayment and avoiding quick repayment of debts, especially gambling debt. Even though this will result in higher interest payments, they suggest a lengthy repayment period to serve as a reminder of the problems caused by the addiction.
• The cost of addictive behaviors, such as substance abuse, gambling, and smoking, is another topic to consider. For example, pack-a-day smokers may spend almost $2,000 a year to support their habit. Not surprisingly, a recent study found that the typical nonsmokers’ net worth (assets minus debts) is roughly 50 percent higher than light smokers and twice the level of heavy smokers.
• Reach out for help. People with addictions and their loved ones do not have to face the problem alone. Many hospitals offer smoking cessation programs and/or quit lines. Various 12-step programs are available for substance abuse issues, such as alcoholism. For gambling addictions, contact the National Council on Problem Gambling at www.ncpgambling.org, Gamblers Anonymous at www.gamblersanonymous.org, and Gam-Anon (for families of problem gamblers) at www.gamblersanonymous.org/.
• Other sources of assistance for addictive behaviors, and debt incurred as a result, are private therapists and treatment centers, employee assistance programs at work sites, and nonprofit credit counseling agencies.