Most everyone knows that going into debt is a bad thing. In today’s reality, going into debt can cause some serious repercussions. There are dangers that arise from not dealing with debt. Below are listed a few of the consequences of not handling your debt.
Bad Credit
If you neglect to pay your debts, then your credit score will be brought down significantly. This will damage any chances of future loans or credit with your bank or another financial institution. Future home loans, car loans, or other large payments will become much more difficult to handle.
If a debtor ignores their debts and does not make payments on time, then the creditor or debt collector could convince a judge to order that your wages be garnished. Up to 25% of your paycheck may be withheld by your employer and used to pay off your debt.
Unemployment
Employers look at the credit scores, and to a certain extent the financial records, of their potential employees. If your history and records show you have unpaid debts and a poor credit score, your ability to be a responsible worker may be in question. Finding a job with unpaid debts is significantly more difficult than with a clean financial record.
Emotional Damage
The stress and anxiety caused by insurmountable debt can induce significant emotional and mental trauma over time. A person simply cannot live a healthy life while at the same time constantly fearing for their financial security. Debt, if not handled, can lead to depression, panic attacks, anxiety disorders, and family breakdown, such as divorce.
To protect yourself and your family from the effects of debt, please contact Brock and Stout today.