No one plans on going into debt during their lifetime. Yet, emergencies, living expenses and credit card overuse have caused many Louisiana residents to end up indebted. If you’re among these ranks, debt’s economic strain has likely taken a toll on you. But it can affect other areas of your life as well.
Debt’s impact on finances
Unpaid debts can cause your financial well-being to spiral. Paying your credit card balances becomes far more difficult if they rise due to new debt each month, as does covering your minimum monthly payment whatsoever. As a result, your credit score will decrease. A low credit score can harm your chances of achieving better circumstances since it can impact your ability to rent an apartment, receive approval for a loan or get a new job. Debt can keep you from meeting your basic needs, too, if it keeps mounting while you’re trying to repay it. You may find that you can no longer cover your rent or mortgage payments, which could lead to eviction or foreclosure. And your vehicle may get repossessed if you fall behind on your monthly payments.
Debt’s impact on wellbeing
Your debt may be stigmatizing and overwhelming, and these feelings can lead to physical and mental health challenges. If you have no plan or way to pay off your debt, the absence of a solution may make you stressed, depressed or angry. These emotions can have adverse effects on your physical health, too. Studies show that debt can increase your risk of headaches, digestive issues, obesity and cardiovascular disease.
While debt may impact your life right now, you have a way to emerge from it. You may want to consider whether filing bankruptcy will improve your situation. While some people stigmatize this process, too, the relief you will feel when you discharge or pay off your debts is palpable. An attorney with bankruptcy experience can help you understand if filing makes sense in your situation.