How debt can leave an impact on your life
Posted by : Premraj | Posted on : Monday, October 17, 2016
Carrying debt often creates roadblocks while you’re trying to improve your financial situation. It even causes delays in your attempt to reach major turning points in life that could actually mean a new beginning for you.
Few ways in which debt can impact both your personal and financial bonding:
Relationships get affected
Buying a home often signifies your gaining financial independence. Financial independence or stability has been indicated by over 50% of homeowners in a survey. About 46 percent of the respondents described owning a home as an indication of their commitment to their life partner.
In reality, most of the new homeowners are weighed down by homeownership. Carrying too much debt has often compelled cash-strapped live-in partners and married couples to opt for house renting instead of home-buying.
Both your income and debt amounts need important consideration regardless of whether you’re buying or renting a home. Your rent dollars will prove to be a competitor for your debt in the eyes of landlords. Likewise, the debt-to-income ratios are considered as a negative aspect by banks since they grow super high.
Suppose you aren’t married, but you’re able to live together. You won’t be responsible for paying off a debt carried by your partner unless you stood as a co-signer on her loans. Fast loans and credit cards are posing a major threat to marriages of late. Even for live-in partners, carrying a debt proves to be a hindrance towards meeting their primary financial goals. It reduces their ability to bear their regular monthly expenses.
Having kids get delayed
Many relationships are cemented by having kids. It’s considered to be a key milestone when it comes to protecting relationships. Your commitment towards your relationship is signified by having kids. According to a large section of survey respondents, your debt burden prevents you from moving up to the next higher level in your love life. Numerous surveys project the respondents’ idea of delaying their plans to have kids.
Your stress levels get higher and your relationship suffers once you’re burdened with debt.
Repaying your debt and considering various budgeting plans adds to your stress, especially when you have to meet your current utility bills. Remember, you’ll need to pay for daycare, medicines and diapers after the baby is born.
Wedding plans get postponed
Your wedding plan may be delayed due to some important and shallow reasons. The wedding cost tops all other factors in your list. Some of us are even scared of financing a wedding or even their wedding rings since they have an overwhelming amount of debt to cope with. That’s one reason, why so many relationship decisions are at stake.
Student debt has always been a spoilt-sport. Student loans have compelled a section of the American Student Assistance respondents to either postpone or put off their wedding plans. Delaying a walk down the aisle isn’t always an outcome of your fear of carrying a debt burden after meeting your wedding bills. Quite often, it’s about the consequences of your partner’s financial ill-habits that keep you from getting engaged.
It hardly matters whether you or your partner pays your bills after you’ve tied the knot. You’ll need to share a lot of responsibilities among yourselves. Repaying debt also becomes a responsibility for both partners when you have to fend for joint credit. When it comes to pulling out of debt, you’ll be left on the hook once your spouse stops making payments. Your own credit score is bound to be affected regardless of the payment history or the type of behavior that the account is associated with. Imagine a situation where in your partner turns jobless. You may have to shoulder a major share of her financial obligations. That’s why it’s important for you to ascertain your true financial potential before being committed to your partner.