This is a sponsored guest post.
Contrary to most people’s opinion, personal debt causes more than financial problems. Debt can affect you in ways that you never thought possible. It can be equated to illnesses that never go away. It can put you through suffering, both physically and mentally.
Below is a list of the problems caused by personal debt. But before we begin listing them, there are a few things we need to set straight. A personal debt need not drive you to the edge. A problem shared is a problem solved. If a personal debt is weighing you beyond your limits, then it is high time that you see help from family, friends, and even colleagues. There are lots of debt relief companies that can help you manage your debts and give you an amicable solution.
Debt is one of the leading causes of stress. It is a burden that you can’t just let go. Having banks and financial lenders send warnings of delayed payments can send you into an emotional frenzy. Also, overworking to pay off these debts can lead to stress.
Stress can affect both your mental and physical health. It can lead to panic attacks, anxiety, and even depression. This is why we are insisting that you should share your financial problems if they are too much to handle.
2. Wage Garnishment
A wage garnishment is a court order that is issued on behalf of a creditor in an attempt to repay borrowed money. It entails withholding of the debtors’ funds from each pay check. Having your hard-earned money withheld from you isn’t only disappointing, but it’s embarrassing to some point.
And as if that’s not enough, the Consumer credit protection Act does allow an employer to fire an employee if the receive several garnishments. Meaning that a wage garnishment could put your job on the line.
Another problem with personal debt is that it may also affect those around you. For instance, if one spouse is responsible for incurring these debts. The other partner might resent him/her and direct all the blame.
Such a situation leads to conflict between spouses and in the long run, divorce. Personal debt has, on several occasions, acted as a catalyst for divorce amongst many couples.
If the debt is related to renting property, the owner might decide to evict the debtor. This mostly happens when the debt piles up and becomes too much for the debtor to pay. In this case, a landlord might see it best to evict the tenant to avoid the debt from piling up even further.
Although it is not everyone’s wish to be declared bankrupt. At times it is the best solution if you are deep in debt. Lots of people file for bankruptcy, and it has helped them come out of debt once and for all.
For those who have been struggling with debt year after year, you can see a lawyer, and he/she will advise on how to file bankruptcy. There are three types of bankruptcy which have been explained in Chapters 7, 11, and 13.
As you can see above, debt comes at an extremely high financial and emotional cost. These effects can affect your life severely, and this is why we advise people not to let debt control their lives. Before you borrow a single coin, ensure that you make an informed decision.