When you’re struggling with debt, it’s surprisingly easy to find reasons to delay solutions. Though the sense of urgency never fully leaves you, there’s always something standing in the way. Sometimes it’s that you’re scrambling too hard, working extra hours and juggling bills, to stop and take stock. Sometimes it’s that you’re hoping your next tax refund or year-end bonus or that raise you should be getting in the spring will solve your problems. Sometimes, it’s just fear.
Whatever the reason, delay is almost always counterproductive. The sooner you educate yourself about your options, the better.
Downsides of Delay
Here are 6 ways you may be hurting yourself and your family when you delay resolving debt.
1. Financial stress can make you sick.
You probably already know that debt can impact your mental health–one study showed that people under financial stress were six times as likely to suffer from anxiety. But you may not know the issues spill over into your physical health, too. Money problems are associated with higher rates of high blood pressure, heart disease and other serious health conditions. The longer you remain under stress, the more likely it is that your health will be affected.
2. Debt can impact all areas of your life.
Financial stress can creep into every corner of your life, including family relationships and your job performance. You’ve probably noticed that when you’re under stress your temper is shorter and you may be distracted. Your loved ones are probably noticing too. And, that doesn’t just impact personal relationships. That stress and distraction can impact your job performance and work relationships. If you’re already struggling financially, the last thing you want to do is put your job at risk.
3. Staying in debt is expensive.
When you’re scrambling to make minimum payments, hold on to your place to live and the vehicle you need for work and always coming up short, life gets more expensive . That happens in many ways, from resorting to credit cards or high-interest short-term loans to cover the rent or mortgage to late fees and interest piling up to keep you from ever digging out of debt. When you delay taking action, you’re throwing away money you could be using to start building more stable finances. Sometimes, those wasted dollars add up to thousands, or even tens of thousands.
4. Bad credit costs money–and limits your options.
We’ve already covered the direct costs of being in debt, like interest and late fees. But falling behind on your credit card debt and other bills can cost you money in other ways. Your credit score impacts more than just your access to credit. You can also expect to pay higher interest rates and fees when you are approved for credit, and even to pay more for non-credit transactions. For example, you may be asked to put down an extra deposit to rent an apartment with bad credit, or pay higher rates for your auto insurance.
5. You don’t want to get comfortable in your rut.
This one may sound crazy, especially on the heels of all that information about the impact of stress on health and relationships. But the truth is, humans can get used to anything. The longer you stay in untenable circumstances, the more normal those circumstances start to feel–and the harder it is to remember or imagine something better. Drowning in debt is not something you want to get used to or learn to accept. The sooner you break that cycle, the easier it will be to get back on a better path.
6. Delaying the start delays the end.
Getting out of debt is a process, whether that means negotiating with creditors, consolidating debt or filing bankruptcy. The amount of time each process takes is different. For example, Chapter 7 bankruptcy typically takes about four to six months, while Chapter 13 bankruptcy lasts for three to five years. Then, you’ll likely have to invest some additional time in rebuilding your credit. Every time you postpone resolving your debt, you postpone the day when you can be debt free with emergency savings and an improved credit score.
The Next Step is Easy
Getting help with your debt may feel overwhelming, but it doesn’t have to be. At Borowitz & Clark, we’ve helped tens of thousands of people in and around Los Angeles resolve their debt so they can move forward. We understand the stress and how impossible your situation can feel. We also know financial recovery IS possible. Call us today at 877-439-9717 or fill out our contact form to learn more about your rights and options.