Debt Fatigue

What Does Debt Fatigue Mean?
When a debtor stops making payments on his or her debts and starts spending again after being overwhelmed by the amount of debt incurred and the seeming futility of the debt repayment process (the overall amount of debt owed does not appear to dramatically lessen as payments are made). Experiencing debt fatigue may eventually cause the debtor to declare bankruptcy as a last-ditch effort to resolve the situation.

Investopedia explains Debt Fatigue
One of the worst and most immediate effects of debt fatigue is that the debtor may start to overspend and incur more debt again. Increasing the debt load will not help the debtor's financial situation and is likely to drive the debtor to insolvency.

In order to make debt fatigue less likely to occur, a debtor should stop incurring additional debt and also make a repayment plan that allows the debt to be fully repaid sooner rather than later. By not dragging the debt out any longer than necessary, the debtor will start seeing more dramatic results of the debt repayments sooner, preventing him or her from becoming unmotivated by the overall debt burden.