Wednesday, July 25, 2012, AM | 1 Comment
The stresses and strains of being in debt can undoubtedly have an adverse impact on people. With more and more of us feeling the financial squeeze as the recession continues to bite, debt is emerging as a major source of worry in our lives.
How Being in Debt Can Affect You
There are many ways in which debt and even just the fear of debt, can affect people. There are practical and emotional consequences and it can have an impact on your health and well-being.
Being in debt and owing a lot of money to different creditors can be extremely stressful. The toll of worrying and fretting about the problem can have a very negative impact on an individual’s state of mind and put a strain on family life.
Couples’ relationships can really suffer too, especially if the borrowing has been done by one partner without the other knowing. Sometimes an unexpected redundancy can mean that the bills can’t be paid any more.
Having creditors asking for their money back can lead to great uncertainty and fear and trying to get out of debt can lead to strain as well, as a family copes with less disposable income to make payments to eradicate the debt. For children it can be hard to understand why they can’t get new toys, clothes or gadgets and parents can feel guilty that they are not providing properly for their sons and daughters.
Birthdays and Christmases can be particularly tricky, but remember that young children shouldn’t notice too much if there are fewer gifts under the tree, while the older ones can understand, to some extent at least, why belts are being tightened.
For some people, the worry and strain of debt can lead to real health problems, especially mental-health issues. Being in debt can leave people with low self-esteem, a sense of failure and a loss of control.
In addition, the continual pressure and stress can understandably lead to a potential breakdown. It’s important to recognise when it might all be getting too much and to visit your GP to seek professional help.
Being in debt can make it difficult to get credit. Of course, if you are in debt you shouldn’t be seeking to borrow more, but if you succeed in becoming debt free and are then looking for finance, a negative rating on your credit report may make it hard to access the best deals.
It is possible to take steps to improve your credit score, so take a close look at your personal credit report and then see what you can do to get a better rating.
How to Cope
For many people, the challenge will be to turn the worrying into a search for a positive solution that will allow them to take control of the problem and get back on a financially sound footing.
Borrowing more won’t solve the issue and will just lead to more stress in the long run. Getting the right advice to guide you out of debt is crucial and will help you to work out a strategy to pay off your creditors and become free of debt.
This guest article was written on behalf of IVA expert by Tony, a blogger from the UK with a passion for being thrifty and saving money.