Ways Debt is Hurting You

We live in a society where debt is expected. Most people have mortgages (sometimes more than they can afford), along with car payments and other loans. However, credit card debt is also common. More and more people put things that they need and want on their credit cards. Though you may have a lot of debt in your life, it is important to know why it might not be good for you.

Here are some ways that your debt is hurting you.

It can be very stressful. Worrying about money and your debt can take a toll on your health. You may lay awake at night worrying about how you are going to pay your bills. There are going to be times when your heart just races as you worry about your debt. Some people even get an ulcer from all of the worrying that they are doing.

You might not be able to buy a home. You need to have a good debt to income ratio if you want to take out a loan, whether it is one thousand dollars or several hundred thousand dollars. If you have too much debt, the loan officer may not think that you have enough extra money to take on any more payments.

You might not be able to save for retirement. If you are spending all of your money trying to get out of debt, you aren't going to be able to put money aside for your future. It is important to save as much money as possible for your retirement so that you can enjoy this time, without worrying about your finances.

If you are single, you may struggle to find a partner. When looking for a partner, people want someone who is financially stable. They may walk away from someone who has a lot of debt, even if it is student loans. If you have a lot of debt, you may struggle to find someone to date or even marry because of the consequences that you are facing when you have too much debt.

If you are a parent, you may be hurting your children too. Children learn from their parents. If you spend too much money and reach for your credit cards, your children are going to think that is normal. They are going to do that when they get older, causing the cycle to continue.

You aren't going to be able to get some things that your children need. Children are expensive, especially when it comes to their health. You don't want your poor credit to affect your ability to provide for your children. They may need a medical procedure or braces and you won't be able to take a loan out to get it done.

You may also want to give them more than you had. You might want to let them go to their senior trip or another fun trip. But they won't be able to due to your credit score.

You aren't going to be able to co-sign for your children. Your debt can really affect your children as they become older. They are going to need a co-signer for their first loan, whether it is for a car or student loans. If you don't have good credit, your children aren't going to get the loan that they need. This can really affect your relationship.

Debt can be detrimental to your health. Not only are you going to be stressing about it, but you might also lose sleep and have time where your heart just races. This is never good. You may also struggle to buy a home or save for your retirement, leading to even more worries about debt and your finances!

Debt can be bad for your relationships. If you are single, potential partners may be turned off by your massive debt. If you are married and have children, you are passing on your debt-filled lifestyle to your children, which isn't a good thing to do.