Being In Debt and the Effect It Can Have On You
Debt when used constructively allows us to build a future. We are able to buy a home and cars, helping us to invest in our future. When you use debt irresponsibly by funding a lifestyle outside your means, there are long lasting consequences for you and your family.
If you have ever been in debt, you are familiar with how it can destroy you financially, physically and mentally. Debt eats away at all your positive energy because all you can do is worry and stress about money. As the debt continues on, so does the interest only furthering your debt. It becomes impossible for you to make any payments and now you’re afraid to answer your phone, open your mail or even answer your door. Here are a couple ways debt can affect you:
Setting an example – You may be sending a poor message to your family. You may be hiding your debt from your family by continuing to spend money that you don’t have. This will paint an unrealistic picture of financial responsibility. If your debt is exposed then your bad habits also make a lasting impression on your family and can encourage irresponsible financial behaviour especially in your children.
Lifestyle – Dealing with high levels of debt can and will contribute to emotional distress. You will start to suffer from anger and depression causing household fighting making your home life unsafe and joyless for you and your loved ones even though it was never your intent. Debt can cause divorce and even long term health issues. Even when debt is beyond your control due to unforeseen circumstances, it looks bad. It can mean repossession of vehicles or even force you out of your home.
So what can you do?
Don’t ignore your debts. It’s better to spend the rest of your life trying to pay off debt as opposed to putting your family at risk. Work together with your family and come up with a budget. Look at what you can cut down on and what you can live without until things take a turn for the better.
Make a list of all your debts. You may want to consolidate all your loans into one to save yourself on the higher interest cards or loans. Consider bankruptcy if it’s your only option. Consider taking out a personal loan with low interest that will also help you rebuild your credit. With the loan pay off your debt and with the extra money you’ll be freeing up by cutting out unnecessary expenses use towards paying off your loan. Consider the services of Prudent Financial who is the leader in the financial industry offering loans to people with bankruptcies, proposals and bad credit histories across Toronto and the GTA since 1984.
It’s a long tough road but if you’re tired of being paralyzed, you need to take control of your debt and take back control of your life! Visit for more information.