Ways Debt is Holding You Back

by Miranda Marquit · 0 comments

You may not realize it, but debt is holding you back. When you have debt, it not only affects your finances, but also impacts other areas of your life. Getting out of debt, especially consumer debt, is important if you want true financial freedom.

Here are some of the ways that debt could be holding you back:

Resource Drain: You Can’t Use Your Money How You Would Like

Once you are saddled with debt payments, you can no longer use your money how you would like. Instead, you are stuck making regular payments. Rather than using that money to further your goals, or buy what you want, you are stuck making payments. Before you get into debt for something, it’s a good idea to consider whether or not you really want it. Putting that purchase on your credit card might make you temporarily happy, but long after you have grown bored of the item, you will still be paying for it.

At some point, you become over-leveraged. You might want (or even need) to buy something else, but you can’t because you have a debt payment to make. As long as you have debt, your money is obligated elsewhere, and it isn’t yours to do with as you please. And don’t forget that those payments include interest that goes right into someone else’s pocket and provides you with absolutely no benefit beyond the “privilege” of borrowing.

Lost Opportunity

The fact that your money is tied up in making debt payments isn’t the only way that you can’t use your money as you would like. There are a number of opportunities out there that allow you to use your money to make money. Or, you could be saving that money up instead of paying your debt, and that could lead to an earlier retirement.

Paying on a large amount of consumer debt is holding you back, and ensuring that you will not have the money you need to take advantage of opportunities that come along. Lost opportunity is a very real issue. Get your finances in order, and pay down your debt, and you will be ready to take advantage of opportunities as they come along.

Emotional Well Being

Another problem with debt is that it affects you emotionally. The stress of having debt can weigh on your mind, causing you stress. Indeed, financial trouble is a major cause of stress in the lives of many. When you are worried about paying bills and meeting obligations, the stress can be a real problem.

On top of that, your emotional well being can have an impact on your relationships, and even on your physical health. You are more irritable when you are stressed about money, leading to strains on your relationships with family and friends. How many marriages are stressed because of money problems? How many parents snap at their children because they are anxious about how much money they owe?

Don’t forget, too, that anxiety and stress can cause heart problems, and lead to other physical ailments. Make a plan to pay down your debt. Resolve to get a start on debt reduction, and you’ll feel better almost immediately. And once you have your debt paid off, you’ll feel even better.

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