Debt Management: 5 Reasons Paying Down Your Debt Might Be ...

Debt.

It?s something that we Americans have been eager to pile on and slow to pay off. A 2012 survey by Bankrate.com suggests that 25 percent of Americans carry more credit card debt than emergency savings.? And according to NerdWallet.com, the average amount of credit card debt per indebted household stood at a staggering $15,216 as of June, 2013.

If just looking at those numbers makes you squeamish, you?re not alone. Carrying mass amounts of debt is bad for us in more ways than one and can have severe long-term effects that go well beyond our finances.

Here are 5 ways in which it might be more important than you realized to begin strategizing your debt-reduction plan today?

1.)??? Your health

You know that thing people say when the going gets tough - ?At least you have your health?? Well if you?re in debt, you might not be as healthy as you?re letting on.

Multiple studies over the years suggest a correlation between indebtedness and stress. Depression, anxiety, panic attacks and ulcers have all been linked to debt-related stress by medical experts at WebMD, among other online resources.

If you?re stressing out about your debt, there?s a good chance that your health is taking a direct toll as well.

2.)??? Your dating life

As the New York Times reported on late last year, a question that comes up more and more on first and second dates is, ?What?s your credit score??

No, seriously.

High debt can lead to a bad credit score in more ways than one ? minimum payments too big to pay off each month, or sky-high amounts owed that make you look like a high risk in the eyes of creditors ? but you probably didn?t think it would hurt your dating life, too.

With the Great Recession hardly in our rearview mirror, a frugal and responsible spender is considered by many these days a must in a mate.? Don?t let debt derail your dating life.

3.)??? Your career

Not only can a poor credit score derail your hopes of getting hired for your dream job (it can), but the debt often associated with such credit woes can lead to a lack of productivity in the workplace.

As reported by The Guardian, two-thirds of those polled by the Consumer Credit Counseling Service said that, ?Work has become difficult due to the constant worry about debt?. How you make your living can suffer from debt problems at home as well, yet another reason why formulating a debt-reduction plan is one of the most important things you can do for your well-being.

4.)??? Your future financial goals

Obviously, carrying a high amount of debt puts future ?milestone purchases? in jeopardy, since big-ticket items like a car and a home require good credit for reasonable loan interest rates.

Carrying a high amounts of debt ? especially credit card debt ? raises a red flag to lenders that you?re unwilling or unable to pay off your debts. Naturally, this could mean high interest rates on the above items that might nudge them out of your price range; that is if you?re approved at all.

Finally?

5.)??? Your estate

Let?s assume that you already own your own home and have moved into your retirement years. The estate you?ve worked to build upon and maintain for your financial well-being as well as the well-being of your benefactors (i.e. your spouse, your kids, your grandchildren, etc.) relies considerably on how much debt you carry when you pass on.

While the children of a parent who has passed isn?t liable to pick up the tab on unpaid debts at the time of their debt, creditors are ultimately the ones paid off first in an estate sale. That is to say, your benefactors won?t receive a dime of your sold estate until your creditors have been paid in full.

Carrying an unsustainable amount of debt has negative impacts in both the future and the present. Consider your financial situation, ask yourself if it is making your life stressful, and begin to strategize on how you plan to pay down your debt as soon as possible.

We recommend making a budget, setting realistic but aggressive financial goals, and even telling your friends and loved ones about your plan to pay down your debt to nothing. A support system is helpful when paying down debt and you might even rally a few of your debt-stricken friends to join you on the wagon as well.

Whatever it takes, just know that devising a plan today is the first step to gaining a better dating life, a better career and ? perhaps most importantly ? the ability to finally get some sleep at night.

Photo Credit: Images Money

Source: http://www.dumblittleman.com/2013/06/debt-management-5-reasons-paying-down.html

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