Being in debt is bad you are several reasons. Being under debt is the stress which can lead to medical problems and prevent you from relaxed normal and happy life. Being in debt his expensive because whenever you take out a loan or charge your credit card you are paying hundreds or thousands of extra dollars is interest to the creditor. If you are not in debt think of what all you could do with this extra money that is going towards credit card companies and editors. You should try paying off the debt as soon as possible. The exception of costs is loans like automobile loan and mortgage loans which have to run their duration. For closing either of these loans may result in you having to pay extra charges as penalty. But even the penalty charges may be worthwhile if it save you thousands of dollars in interest.
Being in debt causes stress in personal and family life. Being in debt creates insecurity could spouse and children which can result in disagreements and unhappiness amongst the family. It is perceived that financial troubles are one of the biggest reasons for separation and divorce amongst couples.
Being in debt takes away from your future income because every time you take money on credit you’ll have to pay for it from what you earn in the future. Whether this is a good thing or a bad is a matter of how we utilize the money and credit. Buying a house today and paying for it may future income can be considered good form of credit because you get today what you want a future.
Being in debt can prevent you from doing things that you want to do today. Pay off your credit card bills so that you can utilize the money better.
Being in debt prevents you from saving and preparing for the needs of the future such as your retirement fund and your child’s education. Get out of debt and start putting that money away towards savings.
Being under debt and making the payments regularly will not harm your credit score. In fact regular payment history will work to better your credit rating. However having unpaid debt can lead to delinquent and late accounts which are bad for your credit score. Once a credit rating is damaged paying off your debt is the best way to start on the road to credit recovery.