There are many insidious consequences to being in debt, many of which people who are in serious debt may not realize or appreciate at the time. You may be so busy just trying to make it from paycheck to paycheck or juggle the debts that are threatening to overwhelm you that you have no chance to stop and realize the terrible consequences that being in debt is wreaking in your life aside from just ruining your finances. Being in debt can take a toll on your health, as it often consumes your thoughts, can harm your ability to sleep, and even cause physical symptoms like ulcers or heart palpitations. It can also seriously jeopardize your ability to save for your future, which can result in a reduced standard of living in retirement. This may not be an immediate concern if you are not close to retirement age, but no one can (or wants to) work forever, and it will eventually catch up with you. Lastly, being in serious debt can also ruin your credit score, which can prevent you from getting a better job or qualifying to buy or rent a house or apartment.

The Toll on Your Mental and Physical Health of Being Seriously Indebted

Many people understand that being in debt is not an ideal lifestyle, but do not understand the toll it can take on you aside from just your finances. It can create serious mental health problems if you are under constant stress because of trying to make ends meet every single month. The worry can just eat away at you and result in depression, anxiety, the development of ulcers or other physical signs of the immense pressure and stress your financial situation is causing you.

You may be getting calls at all hours of the day and night from debt collectors who are trying to get you to pay various bills and you simply cannot keep track of everything that you owe and who you owe it. It can be simply exhausting trying to juggle all the bills and then also raise children or deal with all the normal pressures and stresses of everyday life. Being in serious debt can also mean that you are forced to take on an extra job that may further take away from your ability to sleep or even to spend time with family or friends, resulting in decreased life satisfaction.

How Debt Can Jeopardize Your Financial Future

Debt can also take a serious toll on your future finances without you even knowing or realizing it. Your ability to save for retirement may be negatively affected by your need to dedicate your resources to keeping the house of cards that is your debts from collapsing upon you. Given the power of compound interest/returns and the longer time period over which you save for retirement generally resulting in higher retirement savings at the end of your working days, having to commit an inordinate amount of your resources to just keeping up with minimum interest payments is robbing Peter to pay Paul when it comes to savings, whether for retirement or a rainy day.

Being in debt can also result in wrecking your credit score, which can impact your ability to buy a new home, a vehicle or even to get a new job or rent an apartment. Your credit score is used in determining everything from whether you will be approved for a particular loan to whether you will pass the background check that is performed when you apply for a new job. Being in serious debt often means that your credit score is far from ideal, so your debt may be holding you back from not only moving into the new chapter in your life.

Stay Out of Debt!

Being in debt is bad news for many reasons. The reasons discussed above are only the tip of the iceberg and there are many more reasons that you should try to avoid debt. It can cause you unnecessary stress that can result in mental health and physical manifestations from the sheer enormity of trying to manage an often unmanageable situation entirely on your own. It can also ruin your finances far into the future by getting rid of your ability to save for retirement or destroying your credit score, leaving you with no way to get a better job or rent an apartment or buy a house. If you think that you need our services, please contact us at Signature Servicing at 844-440-7654 or email us at info@signatureservicing.com. We know financial matters are a personal subject, so we take your privacy seriously.