THE EFFECTS OF HAVING TOO MUCH DEBT
Too much debt has negative financial effects on
everyone. However, excessive debt will have additional
consequences to your personal life, mental health and
overall well being.
Below are some common examples of the effects of having
too much debt.
1/3 of your credit score is based on how much
debt you have. Having open accounts does not necessarily
mean you will have a low credit score, making you a
higher risk. However, owing money on several account will
result in a lower credit score.
Ability to obtain credit
As mentioned, having too much debt will hurt your
credit score. Lower credit scores mean that you will have
a difficult time getting approved for certain types of
loans and credit cards. Get more info on the
effects of credit card debt on mortgages.
Being in debt can have a big effect on how you feel
about yourself. Having low self-esteem can snowball into
many different issues, i.e. appearance, cleanliness,
Being in debt causes stress. Too much stress can make you
Stress will also result in difficulties in sleeping.
Having high debt can result in money fights with your
spouse. Couples usually have different views as to what
is important/necessary and what is not when money is
tight. Unfortunately, money issues is one of the top
reasons for divorce. Getting divorced will not eliminate
the problems though. It is crucial that you pay close
attention to the status of all of your accounts,
individual and joint when going through divorce.
Learn more about
divorce and shared debt.
Don't let debt control your life! Star Loan Services' Credit
Counselors can help guide out of your financial mess.
Get a free debt evaluation today!
of different accounts have on your personal