The author John M. E. in his book titled “Gambling Addiction” mentions that those having problems with their gambling mostly also have problems with their financial situation. In order to provide money for their habit of gambling the addict will often take loans with the intention of paying them back from future winnings from gambling. Then, in reality not being able to pay off the borrowed money, the individuals have to look in other directions to clear their loans. There are myriad sources which can help the gamblers to pay back their loans.
End to Gambling
The addicted gambler must take the initial action of discontinuing playing and gambling. As per John M. E. such addicts pile up their losses by trying to win money by more gambling. In some cases this might be successful, but frequently it so happens that the addict will either increase his losses or briefly succeed only to start again to pile up the gambling debts.
Answers to Gaming
Fortunately in some cases after incurring huge gambling debts, some addicts recognize that gaming has an unconstructive effect on their life and will voluntary refrain from betting. But a compulsive gambler will have to get professional assistance to prevent his betting to continue. The help can be obtained from the 12-step program of The Gamblers Anonymous or through sessions with a psychotherapist, analyst or psychoanalyst who has knowledge about helping and curing such addicts.
After the addict has refrained from betting, he has a variety of choices to try to clear his losses. Assessing the volume of the losses, the addicted person may consider combining all debts into a single management program and all the debts are paid out in equal monthly installments. But the losses are huge then he addicted person may have to file for bankruptcy. It is advisable for such addicts to take help from a professional financial consultant or a credit counselor.
As per John M. E., to get money for their compulsive gambling needs, some addicts will borrow even from dubious sources, such as swindlers. Such being the situation, conventional process of managing credit, for example accumulating all debts or to take advantage of bankruptcy, may not be applicable.
Uncle Sam’s dues
In contrast to normal debts, gambling debts have the provision of deduction from payable taxes to Uncle Sam. The Internal Revenue Service allows tax payers to claim deduction of these losses as long as these losses are not more than the amount earned from gaming in the concerned year and as long as proper supporting documents are attached along with the claim. In the absence of such documentary evidence, the IRS may not allow these deductions to the tax payer.