How Credit Card Debt Can Ruin Your Life

How Credit Card Debt Can Ruin Your Life

A man enters his credit card information on his phone while making a purchaseCredit cards are an essential financial tool that any adult today should possess. They help you spend on everything from day-to-day essentials to luxury items and emergency cash while helping you build a credit line too.

However, it’s not just your personal spending that is affected as you accrue credit card debt. The effects of credit card debt can be more far-reaching than you realize, affecting various aspects of your life, including:

It can ruin your credit score

The simplest, more straightforward effect of credit card debt is how it ruins your credit score. A poor credit score comes with a host of implications and complications that need to be addressed.

Generally, delayed or missed payments, excessive debt, high interest can bring your credit score down, which means you’ll struggle in different areas of your personal and professional life. Landlords will be hesitant to rent a house to you, jobs may not come by as easily, and loans can be almost impossible to acquire.

A couple uses a credit card to make online purchases while looking somberIt affects your ability to own property

Seeing as how debt and a bad credit score go hand in hand, it may impede your ability to become a homeowner. If this is a goal you aspire to, it’s crucial to sort out your debt over time.

This is because either mortgage will come at ridiculously high interest rates, or lenders, in general, will be unwilling to give you a home loan. Some properties also become inaccessible due to excessive debt, and you’re left to deal with the impacts of your debt in the long run.

You may struggle to save for retirement

Saving for retirement is absolutely necessary when you’re young. Ideally, people should start saving as early as their 20s, but there needs to be a realistic plan. Excess debt means you’ll spend so many years paying that off (with interest) or using your retirement fund to pay off your existing debt, you’ll have to put other plans on hold. Retiring with debt is one of the biggest mistakes to make and one that can cost you heavily.

Given that we live in a debt-centered economy, credit cards are an essential component of functioning in American society. You can’t go about your life without the use of one, and so it’s crucial to learn how to mitigate and manage debt.

Credit card debt may ruin your entire credit score and history in the long run. Manage your debt with the help of an experienced debt relief lawyer Kingston, NY. Reach out to the law office of Brian Juran to know more about his services as a bankruptcy attorney.With extensive experience in handling thousands of bankruptcy cases, he has saved thousands of clients in Ulster County from losing everything such as their homes and cars to credit card debt. You can read more testimonials and information about his service here.

 

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