Considering the Consequences of Consumer Credit Debt
America's number one stress is paying down debt!
When it comes to monkeys on your back, consumer credit debt is the monkey of monkeys, it’s truly the big ape. Overbearing, overwhelming, continually frustrating and seemingly forever present, and it has a lot of people getting payday loans.
Americans today are drowning in a record $972.5 billion dollars of revolving consumer credit charges according to the Federal Reserve. Each household carries on average $17,000 of unsecured debt and one out of every five households is either behind on payments or over the limit on at least one account according to Bankrate.com.
We in this country have become the biggest spenders in the world and our mismanaged consumption is treasured by many of the worlds economies who are largely subsidized by the goods and services they sell to us. Consequently, this may be one of the very reasons why so many countries’ economies are struggling right now. When we suffer many suffer with us.
Pressure To BUY! BUY! BUY!
Because we live in a society that constantly bombards us with advertisements of the latest and greatest products and services as well as the reasons why we need to have them, it is easy to fall prey to instant gratification and just “charge it”.
What many fail to realize or consider are the further reaching consequences of consumer debt, and how it effects us now as well as days, months, or years from now – like having to get payday loans to make your next credit card payment.
Here are a few reasons to contemplate before committing to that next purchase on plastic.
Limited Opportunity For Future Endeavors
No matter how you look at it, every transaction reduces future opportunity as long as you owe that debt. Interest and penalties on the average $17,000 debt owed by each of America’s households can cost around $400 dollars a month. When buying on credit, you must think about what you hope to accomplish in the immediate or extended future, and what it will take to help get you there. Most likely it will involve money so the more you spend paying interest to creditors, the less opportunity you will have to pursue your own goals and desires.
Decreased Chances of Desired Employment
Many people fail to recognize the effect of debt on credit, especially if late payments and the like have begun to take place. We each have what is called a FICO score which determines our credit worthiness. The higher the FICO score, the more credit worthy an individual is portrayed to be whereas a lower FICO score reflects less credit worthiness on an individual.
Understandably then, it is no wonder why employers are now pulling credit reports on prospective new hires. Credit scores can give employers an idea of how responsible you as an individual may be when it comes to things like tardiness or task deadlines. After all, if you cannot manage your credit, you may not be able to manage other tasks as well.
Debt Can Cause a Troubled Spirit
Stress over debt has become a health concern for many.
When debt gets away, it gets away fast and before you know it you spend every dime you have just paying the monthly minimum payments which lock you into a cycle of poverty for years.
The stress associated with debt as well as the embarrassment or humiliation one feels due to the irresponsibility of their actions tends to trouble both the heart and the mind. The number one stress in America right now is “How can I pay my bills down?”
Stress as we all know, has far reaching effects on our health; something to consider before your next purchase.
Troubled Relationships
Debt and financial strain leads to troubled relationships, particularly marriages. Not only is money the number one contention in American households, but it is also the biggest cause of divorce; divorce hurts everybody, especially the children if present.
Are You Struggling With Debt?
If you are currently struggling with debt and need some helpful tips to get out of debt, The Personal Money Store blog from your Payday Loans Source has some informative articles that can help. Simply choose from the titles below.
“Payday Loans, Credit Repair, Money Saving Tips | Personal Money Store is Here to Help You!”
“The Beginning Of The End | Eliminating Consumer Credit Debt”
“Consumer Debt | Negotiating with your creditors”
That is the worse part about “stuff.” Stuff seems to make your spouse or yourself happy but when it comes time to pay up it causes friction and sometimes outright fighting about which purchased caused the problem.
It seems to be better when people can just control themselves and find a better way to make themselves and each other happy than buy “stuff.” Stuff is what has caused much harm in society today. It is a good thing people have access to short term credit like payday loans because paying a little higher interest rate is better than a marital dispute.
I couldn’t believe that a low Fico score can affect one when it comes to applying for a job. This really opened my eyes about how if someone is responsible in their finances it can help them with many other things in life like their marriage or their job.
$17,000 on average? Wow….that is a lot of debt on just credit cards. I didn’t know just how pervasive your credit score’s importance was. I can’t believe your credit score impacts what kind of job you can get.