“Taking on a few debts won’t hurt, right? At the end of the day, everyone does it.” Unfortunately, many Americans tend to think that way and often find themselves trapped in a spiral of debt that ends up damaging (sometimes beyond repair) their finances, and can even take a toll on their mental and physical health.
The truth is that debt can be the source of a myriad of problems, so you should think twice before taking on large amounts of debt that could damage your financial future. Below are 6 reasons why debt is bad for you.
If it’s already too late, and you’re already drowning in debt, you may need to start looking for a way to get rid of it once and for all. One of the most popular options nowadays is bankruptcy. If you want to learn more about the process and its benefits, you should talk to a Los Angeles bankruptcy attorney who is always available to you.
Debts are expensive
When you buy something using your credit card, you may feel like you’re not spending anything at all. However, nothing could be further from the truth. Whenever you take on Debt is bad for you, rest assured that it comes with a price, which comes in the form of the incurred interest. Besides, the interest rate will increase if you take too long to pay off your debts.
Debts take away from your future income
When you incur debt, you are basically borrowing money from the income you expect to make in the future. This may seem helpful initially, but in the end, you will be trapping yourself in a vicious cycle of getting money to pay off your debts.
Debts are stressful
When you have too much Debt is bad for you, you may start to worry about how you will be able to pay it off on time, or how you will manage to avoid taking on even more debt to provide for you and your family’s basic needs. This is even worse if you find yourself unemployed and without options to pay what you owe.
Feeling this way will cause your stress levels to skyrocket, which can lead to mental health problems such as depression, anxiety, and suicidal thoughts, and may even affect your physical health.
Debt pushes you to spend more than you can afford
The emotional high we feel when we buy new things is quite pleasant, but it can also be dangerous. The temptation to buy more and more stuff even when you know you won’t be financially able to pay off the debt afterwards can be overwhelming, and could even be indicative of an addiction. Make no mistake, buying indiscriminately without thinking about the consequences is a terrible decision in the long run.
Debts can hurt your marriage
Debt can be a source of constant stress and discomfort, and it can end up severely damaging your relationship with your spouse. The immense pressure that debt can put on your household and family can lead to arguments about who is responsible for the debts or about each other’s spending habits. In more extreme cases, these arguments could escalate into divorce.
Debts steal your freedom
Think of all the things you want to do. Maybe you want to buy your own house, go on a Caribbean cruise or start your own business. Chances are, all of these dreams seem impossible, and all thanks to the massive amounts of debt you owe. It’s no longer just your financial situation, but your freedom and that of your family that is affected by debt.
Bankruptcy can help you get out of debt
If you want to regain your freedom and start rebuilding your finances from scratch, bankruptcy may be your best option. Contrary to popular belief, bankruptcy is a legal process that will help you get rid of your debts so you can get a fresh financial start.
However, the bankruptcy process can be extremely complicated if you are not familiar with it. That is why working with a bankruptcy attorney near you may be an excellent idea.
California is home to many bankruptcy firms that can help you navigate the process and increase your chances of success. Most of them offer completely free consultations, so feel free to contact them at any time to find the right attorney for you.