This article considers why debt is bad for you. It is so easy to get into it. Some do not even know when they have accumulated so much. However, it is bad. It changes our attitudes and does a lot of harm to us.
Why Debt Is Bad for You: It Causes Hypertension and Heartache
You spend most time being anxious about how to pay back. When the debt is so much that it consumes you, it leads to heartache and hypertension.
Why Debt Is Bad for You: Costs Money
Debts carry interest charges which you must pay. However, when there is an interest-free loan, you will not pay a dime apart from your debt. Also, 0% APR credit card promotions remove interest within a specific time limit. A lot of cards have high-interest rates which makes it difficult for you. Paying becomes a problem. The worst of it all is that late payment brings late payment fees as well as lengthens the time of payment. It as well increases it.
Why Debt Is Bad for You: It Makes You Spend From Your Future Income
Debts with high interests make you pay more than you owe. They, in other words, take advantage of you. You purchase electronics worth $1,000 with your credit card at 11%. You can only make the minimum payment, in the end, you pay more than $2,400. It is just best to save some money aside monthly to get what we intend to buy instead of buying a good twice the price with credit cards.
Serves As Financial Setback
When you spend your money paying the debt, which one will you save and invest. Even the bible says that a borrower is a slave to the lender. Debt payment will keep you from providing adequately for your family.
Hurts Your Credit Score
30% of your credit score is based on your debt. When it is high, it brings down your credit score. The more debt you have compared to your credit limits and original loan balances, the lower your credit score.
Makes You To Overspend
It makes you spend beyond your means. Because we are attracted by advertised goods, we desire for a good life, expensive clothing, gadgets, electronics and lots more, we quickly run into it. Credit cards even make it easier for us to run into it especially when we have high credit limits. Always remember that you must surely pay back every dime you spend.
In conclusion, you have seen all the effects of debt, be wise. Avoid overspending. Be responsible with your credit cards and avoid debt.