There are some lessons that you can only learn when you’ve been in debt, which is unfortunate because it would be useful for many people who aren’t and have not been in debt to know about them too. If only they knew what debt could do to you, they maybe think twice before getting in over their heads.
With that in mind, here are some life lessons that being in serious debt will teach you, read them before you take out that loan or go on a credit card funding spree, and maybe you’ll think twice about spending when you could be saving…
It’s Really Easy to Get Into Debt
A lot of people think that only foolish people get themselves into serious debt, but that really isn’t true – it can happen to anyone. It starts with using your credit card to pay for that new washing machine that you weren’t expecting to need and then you think, huh I might as well treat myself to a new Kitchenaid while I’m at it, for example, and then you’re on that slippery slope where you see your credit card as being the answer to not only your problems but your dreams and wants too. It really can be that easy.
Ignoring the Problem Makes it Worse
There are many people who, instead of dealing with their debts and contacting their creditors or sorting out a debt consolidation loan through https://debtconsolidation.loans, when they get into trouble, bury their head in the sand. This is a pretty poor strategy that will only serve to make things worse as the amount you owe goes up, non-payment charges are added, and legal action is taken.
It Keeps You Up at Night
Being in debt is really stressful. When you’re in a situation where you have lots of debts, and you don’t know how you’re going to pay them off, it affects every waking moment of your life and there are a lot of waking moments because it’s pretty hard to sleep when you don’t know how you’re going to make that payment or if the debt enforcers are going to show up in the morning.
You Can’t Do the Things You Want to Do
When you’re deep in debt, you can’t simply go to the pub with friends, hold a lavish birthday party for your kids, buy a much-needed new car or book a sunny holiday away whenever you want to – you need savings and quite often a good credit score for that, which means that debt can really stop you from living the kind of life you would like.
Minimum Payments Keep You Down
If you’re reading this and thinking as long as I can make the minimum payments what is there to worry about? You need to know that paying just the minimum can and does cripple you – just check out http://uk.creditcards.com/calculators/minimum-payment.php if you don’t believe me. Interest is added to the balance each month, which means that the minimum keeps increasing and before you know it you’re in more debt than you can handle. It really is a vicious circle.
Using a credit card or getting a loan isn’t always bad, but you should only do so when there is a real need and when you can afford to pay it all back in a timely manner, fail to do that, and it will seriously affect your life in so many ways, none of them positive.
Featured Post: Please see my disclosure page for details