Being in debt means owing money to someone. There are many reasons for this financial situation. For instance, you apply for credit cards in a time of need. Some companies insist on using a credit card when paying for certain services. If you rent a car or make a hotel reservation, you have no choice but to use a credit card. At times, you feel the pressure of the bills that continue to pile up. It is not a pleasant situation. It is difficult if not impossible to judge the real impact of debt on a person’s life. When you take a closer look at your life, you will immediately realise that it is not everything you wanted. You are in your young years and struggling to make ends meet. The fact is that you do not completely understand how your debt might be hurting you. Continue reading to learn the negative side effects of debt.
1. The Greatest Impact on Your Quality of Life
The quality of life refers to the extent to which you are healthy, comfortable, and able to take part in important life events. As you can imagine, the concept is pretty subjective. Attention needs to be paid to the fact that quality of living is not the same thing as standard of living, although the two seem relatively the same. The latter makes reference to the level of consumption of goods and services. It is not about the completeness in life, but about the richness. Getting back on topic, debt, much as not being a bad thing, has the greatest impact of all on your life. Managing your money is the only thing that you can think about. It impossible for you to focus on anything else, let alone get a good night’s sleep.
Debt influences your choices regarding work, career, and life. You are not willing to leave your job and you do not find the idea of starting your own business tempting. Given all the payments that you have to make, it is completely understandable. Your relationship is most likely suffering. You cannot afford to go out as much as you like. The point is that you cannot spend carelessly here and there because you have financial obligations. Sacrifices need to be made to live a normal lifetime. The good news is that you have the opportunity to choose what to give up – in other words, you have complete control over your personal circumstances.
2. Impossibility of starting an emergency fund
You are under the impression that you are coping. For the time being, you are able to keep on top of payments with the debt. Yes, but can you establish an emergency fund? The likelihood is that you cannot. You do not have enough income to set money aside. What are you supposed to do if a pipe suddenly bursts or you get laid off from work? An emergency fund enables you to deal with life’s difficult situations. You have two choices: paying off your debt and saving for an emergency fund. It is not possible to avoid the expenses that life throws at you. Do not postpone your life goals for too long. Think about how much you want to put into the debt and how much money you are going to save.
3. Raised blood pressure and low immune system
Paying the minimum on your credit card is manageable in the short term. With time, it becomes harder and harder to keep up with those monthly payments. All that money owed is taking a toll on your health. The constant stress from finances can raise your blood pressure. If your blood pressure readings are higher than usual, you know the cause. Debt can lower your immunity. Psychological stress has been linked to immune system dysfunctions. It is therefore essential to learn how to deal with the money worries. It is not as difficult as you may think it is. With the right financial solutions, you can pay off that debt. There are many ways to resolve the problem. If you want to be able to repay your debts, apply for an IVA. IVA is an acronym and it stands for Individual Voluntary Arrangement.
If you have credit card debt, IVA is the perfect solutions for you. It is completely affordable, to begin with. The monthly repayments are determined based on your revenue and expenses. You make only one payment per month for about 5 years. At the end of the term, the debt balances are written off. There is no reason to worry, as you can work out any problem with the IVA firm. Perhaps your income is reduced. You give the firm a call and they will agree to allow you to take a payment break. Organisations allow for some kind of flexibility. Do not feel ashamed for your credit card debt. Being in debt does not transform you into a bad person. What is important is to seek ways to get out of debt. An IVA is at the same time appropriate and beneficial.
4. Delays having children
Having a child is a great feeling. Your home is always full of laughter, not to say that you get the chance to play again. There is no denying the fact that having kids is emotionally rewarding. Yet, many forget that it is expensive too. Numerous costs are involved when it comes to raising a kid. Examples include but are not limited to food, clothing, toys, and vacations. You avoid starting your own family when you cannot overcome your debt. Having a kid seems like an impossible dream. If you and your significant other want to have a child, consider reaching financial success. It may be hard, but it is not impossible.
5. Not taking your vacation days
Approximately a quarter of people in the United Kingdom do not take their vacation days or travel. This is largely due to the fact that they cannot afford to. Vacations are not unreasonably expensive, but it is necessary to dig deep into your wallet for transportation, meals, lodging, and so on and so forth. You have monthly invoices to pay and taking time off from work is out of the question. If you would like to take a holiday without feeling guilty, choose an IVA and pay off the debt once and for all. You will regret not having made this decision earlier.