Debt seems to be one of those issues that everyone struggles with at some point in their lives. Many people will have debt their entire lives, never being able to pay it off and break free of the cycle. Because it is such a common problem, many people think that debt is just another normal part of life, and that having debt does not affect their personal lives much if at all. The truth is that no matter the size of your debt, it does have negative effects on your daily life, no matter what your preconceived notions may be. Many people suffer from the issues that debt causes without even realizing its impact. If you think that debt may be affecting your life, here are some of the ways that having debt negatively affects your life and how to fix them.
Unable to make large purchases
When you have debt, it negatively affects your credit. When you have bad credit, you are not trusted by lenders or other businesses, and therefore cannot get approved to make the purchases that you want to make. Many people with debt are unable to do things like buy a car or house because they cannot get the necessary loans or credit that they need. Obviously, things like transportation and shelter are necessary to our everyday lives, so these issues are apparent.
Added daily stress and anxiety
Having debt may seem like a normal part of your life, but this issue of debt causes stress and other stress-induced symptoms that you may not even realize are connected. Think about the things that happen to you emotionally and physically when you think about your debt or are confronted with it. All of those symptoms can be attributed to your debt.
Additional tension in your relationships
It is an unfortunate reality, but half of all marriages end in divorce. Many of those relationships end or struggle because of financial issues that the couple shares. When you make the decision to spend your life with someone, you take on all of his or her responsibilities as well, including debt.
Not able to take the breaks and time off that you need
Everyone needs some down time, but many people who struggle with debt are unable to have the time needed to relax and unwind. Some families who struggle with debt are forced to work around the clock to pay off their debts and support their families. This adds to the stress and anxiety that they already feel. They get overworked and cannot functional as they normally would.
How to fix it:
"Having debt doesn't need to drastically change your life, I have seen many people with massive debt get on track and live the life that they wanted too," says Jeffrey Weber of SmartBalanceTransfers.com.
You need to create a structured budget that includes payments to each of your debts every month. Take a good look at your expenses and see what you can cut in order to pay more to your debt. Understand why you are feeling the effects and why you are in the debt that you are in. Many people are in debt for good reasons, such as paying for a good education, so focus instead on that accomplishment and how much better your life is because of that.