13 Reasons Why Debt is Bad

Debt. When you hear the word debt it definitely brings up negative feelings. But not all debt is a bad thing. In fact, most experts agree that there is such a thing as good debt. So, here’s why debt is bad.

Good Debt vs Bad Debt

So what is the difference? In a nutshell, good debt is when you owe money for something that will be financially beneficial in the long run.

Unfortunately, we live in a debt-driven society. Every other commercial or billboard advertises credit cards to fund your every want. Quick loans or paycheck advance businesses are plentiful. Even online purchases can easily be put on “credit” payments.

Debt Driven Society and The Drain on Your Purse

How Does Being in Debt Affect You?

Being in debt will give you the temporary pleasure of getting what you want, when you want. But debt has numerous detrimental effects that might surprise you.

Have you ever thought about how the saying “necessity is of the mother of invention,” applies to finances? When you are living on a tight budget, you often have to get creative to make things work.

Kills creativity

Keeps you from reaching financial goals

One of the most detrimental ways that debt affects you is by blocking you from reaching your financial goals. Debt comes into our lives in such a sneaky innocuous way that it doesn’t feel as bad as it really is.

Can cause stress

Having debt hanging over your head makes life less enjoyable. Sure, there are times that you might be able to forget about the money you owe. However, every time you look at your budget or get a bill in the mail it will cause stress.

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