This is a collaborative post.
Indeed, the whole world seems to be drowning in debt, so much so that the topic has become one of the most discussed on all forms of media platforms. And although sometimes we feel like the debt we have is justifiable (for example, if you have a car loan or home loan), being in debt can be a huge setback for your ability to accomplish certain goals in life.
For example, your debt-to-income ratio can put you in some real financial danger. And although a platform like Debt to Success System reviews republic and democracy scam issues, some debts are as a result of our own choices. In this article, we will take a look at how your debt may be hurting you in ways that you may not be aware of.
The quality of your life
Debt has a huge way of affecting your life quality and landing you in some level of emotional stress and depression. Depending on the weight of your debt, you may have a lot of trouble eating or sleeping at night. Indeed, the burden of debt has led to a lot of people to an early grave. But you do not have to wait till it gets worse. If you notice that your debt is beginning to cause you to lose sleep, then it is time to start doing something about it immediately.
One of the most painful sights is an elderly person still hustling to save money, to pay off debts instead of enjoying retirement and resting. Too much debt can limit the amount of money that a person can afford to put into their retirement account. And this can make it very difficult for a person to retire when they want to or when they have to. Most retirement accounts request a contribution of about 15% of monthly income and you may not be able to meet this percentage when you are deep in debt.
Finding a job
The last thing you want is to have difficulties landing a job – especially when you need the money to pay off your debts. But this is exactly what being in debt can do to your chances of getting employed. Depending on the kind of job you are applying for, a credit check may be required. Usually, this comes as part of the interviewing process. However, depending on the job field that you are planning on working in, this can be the difference between getting employed and being rejected.
Moving on from your job
One of the most frustrating things that being in debt can do to you is trapping you in a job that you hate. There are lots of people today still stuck in jobs they wish they could quit but cannot. And as we have already mentioned, this causes a lot of stress and unhappiness. Plus, it could affect your work output as well as your relationship with your colleagues. It can be very discouraging when you feel that your options are very limited or even non-existent.
Apart from your inability to quit a job that is stressing you out because you are in debt, your ability to chase your goals, or live your dreams will become affected. To most people still struggling to pay off debts, chasing a dream is a luxury they cannot afford. As a result, a lot of people – both young and old – are forced to either abandon their dreams completely or postpone them until their debts are settled. Most people with dreams of owning their own business have had to abandon those dreams because of debts.
Buying a home
Depending on how much debt you own or your credit score, you may not be able to qualify for a mortgage – especially if your debt-to-income ratio is too high. When your credit score is low, you may end up needing to pay higher interest rates. This means that you may need to pay more for the home you want. This is the main reason why most people with poor credit scores avoid going for home loans.
Going back to school
You may have some difficulties qualifying for a student loan or quitting your job to go back to school if you have a large sum of debt. This can hold you back from taking a chance to improve your life. Suppose you are at a point of your life where mounting debts make it impossible to improve your life quality or even cover your daily expenses. In that case, it is important to take immediate action to remedy the situation.