5 Major Reasons Why Debt Is Not Good For You
A lot of people would say that it is inevitable to not get into debt, especially with how the lifestyle most people are living in. However, it is really that necessary to be in debt? Can’t people simply live within their means? It’s like people don’t really mind struggling as long as they are getting some money.
In the beginning, it seems like it is perfectly fine to have a little debt, but then it grows bigger and the only time people realize that is not really good for them, is that when they get all the bills that they need to pay, including all the interests. Debt is indeed bad for you, especially if it gets out of control. Here are a couple of reasons why debt is being in debt is never a good thing.
#1 No Savings
The very first reasons why being in debt is not good for you is that, as long as you are in debt, you wouldn’t be able to save. It is very important for a person to have enough savings because this is the money that you’ve been working hard for and saving it for emergency purposes or for buying something that you’ve been dreaming of is such an amazing thing. However, people who have debt are the ones who are least likely to have savings. These people’s salary is basically meant to pay for their debts, the bigger the debt, the longer it will take you to save. Payday is like one of the best days, but for people with debt, it just like getting the money but that’s no longer your money.
However, people who have debt are the ones who are least likely to have savings. These people’s salary is basically meant to pay for their debts, the bigger the debt, the longer it will take you to save. Payday is like one of the best days, but for people with debt, it just like getting the money but that’s no longer your money.
#2 More Worries = Stress
With a debt to pay and no savings, that would just mean that your mind wouldn’t stop worrying. Worrying about the wrong decisions you made when borrowing too much money, worrying about the fact that you have no savings because of the debt, worrying about not being able to enjoy your paycheck, worrying if when will you be debt free. All of these things are just feeling your mind that leads to stress. Debt causes too much stress on any individual, and that’s now how life is supposed to be, you are basically working hard either for yourself or for your family, but more money are going to the debt interest than to you.
#3 It Controls Your Life
Debt basically controls people’s lives, because that is all that they think about. Every single time you get a loan or use your credit card, you are taking a way your freedom to actually earn your money right. Some people think it’s the same thing, but it’s actually not because no one would want to get their earnings for the month and just have it to pay for something that you owe. It is just incredibly painful.
#4 It Costs You More Money
Before getting into further debt, it is best to calculate first the interest that you will have to pay, because the more interest you have to pay, the more money you lose on your debt. It’s pretty simple actually, it is basically stopping you from spending the money that you’re earning on things that actually matter, as well as the things that you wanted to buy. If only you could’ve just waited for your salary instead of borrowing money where you have to pay for the interest. Debt keeps you a hostage, and it shouldn’t be that way.
#5 Credit Score Drops
One of the major debts with huge interests are credit cards. If you happen to start struggling with your credit loans and balances as well as your credit limits, it might affect your credit score, that will totally affect your future loans. It might be impossible for you to borrow money in case of emergency, because of the low credit score.
Keep in mind that you are supposed to be in control of your life, don’t let your debt control you. Money may be important but learn to spend it wisely, being in debt is one of the reasons why people are struggling, so don’t let it take over your life.
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