Negative effects of debt

Debt, it is said, is like a chronic illness that never goes away. It persists and if something is not done, the problem can never go away. If you are sick, the only way to get better is if you seek treatment. On the same wavelength, you can only become debt free if you take certain actions geared towards attaining zero debt. From time immemorial, debt has always been a thorn in the flesh. When you are in debt, you are constantly stressed, lack peace of mind and at times you might even invite a sickness as a result of too much thinking.

Even those who were straightforward individuals known to do things above board might be forced to become dishonest and resort to lying, cheating and even stealing with the sole aim of eliminating their debt. In light of this, what are the additional negative effects of debt?

Eviction

If you live in a rented house and you are unable to pay rent or have fallen behind a couple of months, eviction is a reality. People get evicted from their homes and even offices because of debt. Inability to make payments on time is a time bomb and within no time you will find yourself on the streets.

Bankruptcy

You don’t need to be reminded that thousands of UK citizens file for bankruptcy on a daily basis in order to get relief from debt. The constant nagging calls from creditors, lack of peace of mind and the constant pressure leads people to seek for protection under the law by filing for bankruptcy. Filing for bankruptcy gives individuals relief from debt but ultimately taints their reputation.

Foreclosure

Eviction is not the only thing you need to worry about when you are unable to pay rent. If you have a mortgage that you cannot pay for, foreclosure is a reality you will be dealing with. You will end up losing your home and becoming homeless which of course will make you even more miserable.

Garnishment of wages

As if not being evicted is enough, some creditors seek to garnish your wages by going to court and seeking to have your paycheck paid directly to them. Imagine working for a whole month and then instead of you getting the paycheck, your employer gives all your wages to a creditor! What could be worse than that?

Emotional instability

Even if you are rich, debt can suddenly make you sad and unhappy not to mention being embarrassed. We have seen people who were doing very well lose everything they owned because of debt. Some lose their cars, their homes and their properties are auctioned in order to pay creditors. When this happens, happiness becomes a precious commodity and the negative publicity from press takes its toll.

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Suicidal tendencies

Believe it or not, individuals who are deep in debt tend to entertain suicidal thoughts. To them, dying is the only solution to debt. Some develop depression, keep to themselves and rarely interact with others. Such people feel as if suicide is the only way out and some have taken their own lives unfortunately.

In light of the above, we can say that to be in debt is never a pretty thing. It is for this reason that great emphasis is placed on the need for people to be financially prudent, live within their means and get into debt that they can manage.