is it true that debt rips your life apart?
- xbabe82517Lv 51 decade agoFavorite Answer
It very much depends on the person and the type of debt they're in.
I'm in a lot of debt, but thankfully it's all unsecured debt, ie. credit cards and personal loans. I was stupid and got a credit card as soon as I turned 18, while I was only working part-time. That escalated to more credit cards and store cards, then balance-transfers, and then a loan to consolidate them all...and then I ran the credit cards up again!
I was working full-time by then, but had got into so much debt that I still couldn't afford the monthly minimum repayments. I'm now on a debt management plan - not an IVA - which means that my interest and charges are frozen and I pay off what I can afford each month until the full debt is repaid. I chose not to go down the IVA route (where you pay the debt off for five years, then the remainder is written off), because by repaying the whole debt over a longer period of time, my credit rating won't be so bad once it's all repaid.
I now have to live off what I earn - which isn't very much after my monthly debt repayment has gone out - but I manage, and I feel a lot better knowing that I took steps to get help.
Other people might not cope so well, though. I'm the kind of person who generally doesn't worry about things I can't change. I was stupid and I'm paying the price. I certainly wasn't the first person to get into this mess, and I won't be the last. There's nothing I can do about it, and I've never lost a night's sleep over it!
The only thing that does get to me is that I'm 25 and I'll be living at home with my mum until my debt's repaid, because I could never afford or even get a mortgage while I'm on debt management. Other people younger than me have more or less got their life sorted now, and I wish I could. But I will one day...I'll just have to wait!
So I wouldn't say that being in debt has ripped my life apart. It's an inconvenience. But debt that's secured against property CAN rip lives apart, because people can lose their homes over it. As someone who works for a financial institution, I see repossessions every day. And I can't imagine what it must be like to lose your home through debt. I'm just grateful I never had any property in the first place to secure my debts against, because I could so easily have ended up in that position.Source(s): Personal experience!
- 1 decade ago
Of course - you become a slave to your debt - feeling trapped and burdened. That's why you have to create your own wealth and for those living at home, make sure you work while at home and refrain from buying frivilous things and invest. First, from a young age, get a life insurance policy that builds cash value so that way your premiums stay low so in the event that you become ill (father forbid), your premiums are still low - invest in bonds, stocks, (I personally do not like CDs because they are not real investments - they do not give real interest because you need to take inflation into account but I will tell you what they are good for momentarily). Invest in FOREX....learn it - open a practice account on forex.com. Build wealth and don't create debt!! If you want a car - find out how much your monthly payments will be, and start paying your self that amount for a couple of years - if you find it hard to do, then you aren't ready for that particular one. After the couple of years, you would have saved x amount and be able to pay for your car...or at least half of it. Keep in mind you if you want a $20k car and your payments are going to be $400 a month for five years, so much of that payment is interest but if you pay yourself that amount in two years you would have $9600 - go on ebay...Take your $9600 and put the funds into a CD Secured loan - borrow against your CD so it shows up on your credit. Your bank will charge you 5% but you are earning 3-4% so technically you are only paying 1-2% for your loan. There are many ways just don't fall into the buy today and pay tomorrow game - only on certain occassions (with good debt - not credit card debt).
- 1 decade ago
No, it doesn't if you get things under control. We had a lot of debt pile up over the years. Many different credit cards piled up. We later were able to consolidate them and put them on a loan. Now instead of having a lifetime of credit card debt, we are paying them down every month on the loan. We have an END date, meaning, we took out a 5 year loan so when that time comes, we're done! Otherwise, the credit card companies will milk you forever. It take a lot of self control to get things in order, but it can happen! Don't let it take you over!
- kr@zyk1w1Lv 41 decade ago
Depends on the size of the debt and whether its manageable or not. I have debt mortgage, hp but am having no problems keeping up payments etc. I have had problems in the past and I just dealt with it. That is I went to the people I owed money to and told them my situation and they let me pay it off.
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- tamrn02Lv 51 decade ago
Yep....don't do it!!! Be debt free! Old fashioned way was to earn the money then buy the goods. It's best to continue with this. Possibly, a home or a car on credit and that's it.
- TGLv 41 decade ago
Debt 'may' rip your life apart depending on how it's dealt with.
- 1 decade ago
Yes my husband hid 60,000 in credit card debt and it is tearing us apart! 20,000 can easily turn into this is 25% fees and late fees. Do not buy the bigger home. Be conservative!
- Anonymous1 decade ago
find out what fractional reserve banking is, and how the financial services industry operates, before you borrow any money.
Watch this film called 'money as debt' it's pretty informative.
- AlterfemegoLv 71 decade ago
yes it can and relationships especially.