Part 5/8:
Lydia admits to having taken out loans and consolidating debt at several junctures in her life. However, as the conversation continues, it becomes evident that without correcting her habits, this cycle is unlikely to break. Hammer expresses frustration at how she remains entrenched in a cycle of debt but struggles to accept the gravity of her situation.
She has accumulated credit card debt, with high interest rates that further exacerbate her negative financial state. Hammer emphasizes that her emotional spending—specifically purchasing items that aren’t necessities—will only lead to deeper financial turmoil in the long run.