The Hidden Costs of Credit Card Debt

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Answered by: nevil, An Expert in the Debt Management Category
Credit card debt can affect more than just your credit score. Being in debt can cause a number of problems in your life. From physical illness to difficulty finding a life partner, owing money can set you back.

Mental Health

Debt is a shadow that looms over you every day of the year. This can cause some serious stress in your life. Depression is one of the most common problems seen in those who have a large debt load. While any kind of debt stress can trigger depression, debt is often the culprit. Those who deal with the daily stress of owing money are at high risk for developing mental problems, according to some studies.

Self-confidence also takes a big hit when you owe money, as well. This can cause people to avoid seeking out help for their financial problems and they may end up deeper in debt. The lack of confidence may even prevent you from attempting new things or meeting new people.

Physical Health

Studies have shown that stress can provoke physical health issues, as well. While some stress related illnesses are already well known, such as ulcers, headaches and anxiety or panic attacks, most people do not connect these problems to debt. Unfortunately, debt provides more stress than many other situations, as it is ongoing and offers no relief until paid.


Money issues are one of the biggest triggers in arguments between couples. It makes sense then that owing a large amount to a credit card company would cause some major problems. In some cases, this issue can even lead to divorce or breakups.

Renting a Home

Most people understand that a low credit score can prevent them from buying a house, but did you know that it can also limit your rental options? It is common for landlords to take a peek at your credit rating. If you have mounting debt, they could refuse to rent to you.

Your financial records could limit where you can rent. You may have to live in an apartment in an area of town you don't feel safe in. Unfortunately, it becomes much more difficult to find a place to rent when you have a poor credit rating.

How-to Reduce the Stress

It can take years to completely pay off your debt, but just taking steps to reduce debt can have a beneficial effect. When you have a plan to follow that will eventually lead to being debt free, it can alleviate much of the stress.

Talk to a debt counselor is good way to start building a plan for the future. For some people, this step is the scariest. You may not want to admit the problem to someone else. However, it can be useful to get expert advice on how to reduce your debt.

You will need to set up a budget and stick to it. A budget can help you pay off your debts faster by helping reduce the amount of money spent on non-essentials. It may be difficult to cut out your favorite restaurants and buying new clothes, but it will get rid of the stress in the long term.

When you have a plan in place, you will find that the stress is greatly reduced. Once you have completely paid off your credit card debt, you will be able to focus on living your life. You'll be healthier, both physically and mentally, without the debt looming over you.

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