Adverse Effects of Credit Card Debt

                                   Dangers of Hefty Credit Card Debt

It is now obvious that many people in America and other countries where credit cards are used to purchase goods and services have failed to consider the adverse effects of hefty credit card debt before dabbling with it until now that they are facing the consequences of their actions. Though one cannot really blame the consumers because in most cases, the credit card companies or banks tricked the consumers into accumulating such huge debt by offering the consumers bonus offers and lucrative offers of low interest rates that expire after a year. The depressing part of this is that creditors will start calling you a few days after your first missed payment. Most times, if you stop paying your credit card bill, the debt will be sold to a collection agency that will make life miserable for you by threatening you with legal action.

         

 Unfavorable Effects of Credit Card Debt

1 It affects marital relationships

Money is a huge stressor in the lives of the married. It causes couples to get angry, worried, and take money matters out on one another. In certain cases, overwhelming debt can even lead to divorce. On the other side, spouses who are financially unburdened are often much happier and the couples that pay off their debt together, often stay together.

2. It leads to health problems

Overwhelming credit card debt causes stress, and stress hurts our well being. Not only can stress make us care less about maintaining a healthy lifestyle, but it is also directly related to certain diseases. From the nuisance of a headache to a life threatening heart attack, from a compromised immune system to ridiculously high blood pressure, stress plays a role in so many illnesses.

3. Bad credit report and low credit score for most young people.

Most of the bonus and credit offers are targeted at young people who are not yet matured enough to understand the importance of having good credit score or even how to handle a credit card. This early lack of knowledge about credit cards brings about a future of financial chaos as well as jeopardizing the credit reputation of the consumers which will eventually restrict them from certain opportunities.

Credit card companies will definitely report payments that are above 30 days to the three credit bureaus which are Trans Union, Experian and Equifax. The companies will continue to report your late payment until they eventually “charge off” the account. Late payments and charge off credit card accounts will remain on your credit report.

4. It makes leasing of an apartment difficult

Most landlords now check your credit report before allowing you to sign a lease. They do this to prevent a delay in their subsequent payments. No landlord will like to lease an apartment to someone with bad credit report. This implies that your bad credit can make you to live on the street.

5. Employment denial

Certain industries require that you have a good credit record before you can be qualified to apply for their jobs. Believe me or not, debt can prevent you from getting a job. In addition to reviewing your resume, and checking your work history, many employers have started to check credit score. If yours is too low, your potential employer sees you as someone that is not responsible and he might change his mind about giving you the job.

6.It makes it difficult to obtain house and car loans

Banks will definitely check your credit card record before approving your application for house and car loans. If you have a bad credit, your application will not be given a favorable consideration because the risk of giving you the loan will be too high on them. At the other hand, maintaining a good credit record will make the banks to repose their confidence in you by granting you the loans.