Everyone will encounter debt at some point in their life. It may happen right after college, being overwhelmed with the thousands upon thousands of dollars in student loan debt, or it could be from consistently frivolous spending for things you didn’t need, and don’t use even now. While some people can manage their debt, not everyone can do so, and this could severely impact and affect their life in many different ways.
You Are Stressed
Money worries are one of the critical components of stress, and from stress comes anxiety and depression, creating a vicious cycle that can feel almost impossible to escape from. This stress is compounded with interest rates from predatory lenders and banks, and it can feel like one of those strawman fallacies where no matter how much you pay off, you will never be free. From here, your happiness suffers, your mental wellbeing suffers, and so does your physical health. All of which can contribute to issues at some point if your debt is not well managed.
Your Relationships Will Suffer
Besides your health, you may also encounter issues with your relationships. Everyone always advises to be careful when dealing with family, friends, and money, and it might end up ruining more than just your credit score. You might have arguments with friends; you could even see romantic relationships break down right before your eyes. These are the worst-case scenarios, but an unstable financial situation can cause friction between you and people you hold dear, especially if you struggle to pay the money back or get out of debt.
You Never Feel Financially Safe
Everyone dreams of being in a position where they don’t need to worry about money. Some will manage this, or at least, won’t panic every month over whether they can buy food or pay the mortgage. Being in debt makes you feel you’re never going to be financially safe. You always worry that the bailiffs will come and take your possessions because you’ve defaulted on a payment, which can prevent you from ever being able to relax.
You Struggle to Live the Life You Want
If you watch friends and family having fun, going on vacation, and renovating homes or treating themselves, you might want to join in. Debt does not allow you to do this, though, and instead of living the life you want, you are constrained to paying off the balance week after week and month after month. This means you miss out on significant events, which can push you away from your friends and transform you into a hermit as you feel that any expense would be better off put towards your debts.
The chances of ever being debt-free are slim for a lot of people. You will always have something that you owe. However, while you might never entirely escape debt, you can at least do all you can to reduce what you owe so while you may owe a little here and a little there, it is not something that will cause problems in your life, so you can enjoy the world the way you want.