Debt can be scary.
It can feel almost impossible to dig your way out of. You try to dodge the letters, the phone calls, the visits. It overwhelms your entire life.
However, you are not alone, far from it.
In 2018, household debt in America hit $13 21 trillion. Throw in the COVID-19 pandemic, and the 2020 figures are likely to be much, much higher.
The biggest problem with debt is that it holds you back. It prevents you from enjoying every part of your life as you should; it prevents you from doing the things you want to do and accomplishing some of the goals you have set yourself.
The best way to deal with your debts is to tackle them head-on. There are many ways to do it, whether you have caused your debts or how our society and economic system works has got you into this situation. Be mindful not to get caught up in any Debt to Success System Scam and only go for the real thing.
Here, we look at some of the ways that ignoring debt can harm you. Hopefully, this will give you the incentive and motivation to deal with your debts and get them sorted sooner rather than later.
It may stop you from finding the job of your dreams
Some careers won’t care about the state of your finances, but others will. If you want to work in any financial capacity, accounting or law, amongst other things, your financial background will be delved into. If there is significant debt – and we don’t mean a car loan or a mortgage, but unpaid credit cards and store cards and high-interest loans – you may find that it stops you from being chosen for the job. After all, they want someone who will be financially savvy – and being in debt generally shows the opposite.
It may stop you from buying a property
High levels of debt and a poor credit score will almost definitely stop you from getting a mortgage and thus preventing you from buying a property. On the very rare occasion that you find a lender willing to take the chance on you, you will end up paying significantly higher interest rates, which means paying out a lot more.
It may stop you from opening a business
Do you fancy yourself as the next Richard Branson? Have you always dreamed of opening up your own business? Well, if you have high levels of debt, you can probably kiss goodbye to that goal. Poor credit and high debt levels will stop you from getting credit, which is necessary for starting up a business for most people. If investors see you as a risk – and they will – they are not likely to take a chance on you or your business.
Debt can affect all areas of your life. Most importantly, it can damage your mental health and happiness, so it is in your best interest to face it now and get it sorted. Remember, you are not alone when it comes to debt, and there is always a way out of it.