Being in debt is an issue that will have a negative effect on your mental, physical, and financial health. It will ruin your reputation in the community and will also cause a delay in the achievement of your life’s goals. Below are other negative effects that will result from debts especially if your debts are not geared towards putting you in a better financial status:
- It will lead to accumulation of more debts: Whenever you are in debt and do not have a way of paying back, you will result to borrowing some more so that you can settle the debts that are due. This will make you sink deeper into debts. Instead of borrowing to pay up old debts, you should think of ways you will pay off the debts little by little until they are all cleared off.
- You will not be able to save: instead of setting money aside for use in the future, you will be spending every coin in paying what you owe. This will lead to financial stagnation and in case an emergency occurs, you will not have any funds to cater for it.
- Your goals in life will be delayed: when you spend all you are earning in paying off your debts, it will be impossible to accomplish the goals that you have set in life. All that you can do is to keep postponing until that time when you will be able to set aside the funds needed for the goals.
- It will ruin your reputation: if you are always in debts, people will start talking negative things about you and instead of appreciating you whenever you pay them a visit, they will regard you as a burden as you will be borrowing from them.
It is important to think carefully before getting into debts. If you are borrowing so that you can afford a luxury that you can comfortably live without, do not do it as it will only lead to misery when you will be unable to pay off the debt.