financial independence

What is Debt? Is Debt bad? Does it have a negative impact on your life?

A Definition of the word Debt:

Money borrowed usually from a bank or financial institution. The borrower pays interest for the use of the money and usually has to repay it within a set period.

When Debt is not a problem you probably look at it as outstanding credit or you might not even think about it at all, you just pay it every month or week.

Wasted Money

When I think about how I used to borrow money I feel quite sick, I used to borrow and borrow some more making minimum credit card payments then every 6 Months I'd pay it back with lots of interest. I wasted lots of money in interest thousands of £££££££'s.

What happens if I don't pay my debts?

Lots of bad things happen if you don't pay your debts its a slippery slope heres how it looks:

1. Charges - Penalty payments, late fees and bank charges with interest added on top for good measure.

2. Default notices - These show up on your credit rating for the next 5 Years and mean you'll suffer dificulty borrowing money.

3. Hassle - Calls Night and day from your creditors after money.

4. Threats of legal action - Letters saying their going to take you to court your a naughty Boy or Girl, they might sell your debts on :(

5. Court - You may be questioned about your financial position.

6. CCJ's - County Court Judgements which mean you must pay the money in full, you might be able to set up a payment plan with the court.

7. Loss of Assets - They'll take your stuff including your house and if that doesn't cover your debts you'll be looking at Bankruptcy.

The above is just my idea of what might happen and not meant to worry anyone.

Does Debt have a negative impact on your life?

Yes don't get into it. If you are in debt have a look at some of my other ramblings on Debt

Don't ignore your debt, don't listen to what I tell you get professional expert debt help.