Is long-term debt is bad for you
Is long term Debt bad for you most people in the UK are in debt to some degree. Whether it be a mortgage, a business loan or university fees
Nearly everyone will have borrowed money at some point, and will currently be in the process of paying it back.
Taking on debt is, on the surface, not a bad thing; it allows us to afford things that we would otherwise not be able to purchase, and when managed properly, will not be detrimental to one’s life. The issues arise when debt begins to mount, when they are not consolidated properly, and should the person in debt refrain from paying altogether.
However, aside from the obvious financial problems, did you know that have excessive debts can cause an array of other issues?
1. Debt can result in significant health issues
Research has quite conclusively found that debt can be incredibly detrimental when it comes to people’s health. According to an array of studies, having debt can result in ulcers and migraines in some instances, and can even be a contributing factor in heart attacks. Similarly, debt is also liable to result in mental health problems, with specific reference to anxiety and depression, especially when it cannot be managed properly and when it continues to be exacerbated by hidden fees, or by a failure to consolidate.
2. Debt can hamper your credit score
This is quite well known but worth highlighting nonetheless. Your credit score, which can ultimately play a massive role in significant financial decisions such as whether you will be accepted for a mortgage, is hugely dependent on your debt history. Around one-third (30 percent) of your credit score is determined by debt.
3. Debt can encourage poor spending habits
The ability to purchase items via credit, or to pay for items over an extended period of time, can result in poor spending habits because it is difficult to keep track of how much has been spent, and things can look far cheaper than they actually are. This could be incredibly detrimental financially, and could lead to masses of debt being amounted quickly.
So what can be done? The key is not to be afraid of the idea that debt can cause problems, but to find out how best to manage your debts, and find solutions that will ensure you can pay them off in good time. For example, many people choose to take out debt consolidation loans to make paying off their debts easier to manage. Contact us today to find out more.