A recent story on bankrate.com speaks about the true costs of debt – from psychological well-being to the loss of opportunity due to lower credit scores and back again.
The money is nothing to sneeze at. According to the article:
“The average household has $11,000 to $12,000 in credit card debt,” says Christopher Viale, president and chief executive officer of Cambridge Credit Counseling Corp. Those figures are diluted by those who don’t hold any debt, he adds. Households that carry debt from month to month carry close to $17,000 of unsecured debt on average, he says.
But the emotional toll of being overwhelmed with debt is critical. Relationship problems, loss of sleep and ability to focus on the other aspects of one’s life, and a general sense of failure in the face of he onslaught of mail alone can wear down even the strongest of people.
The article lists the following signs of credit trouble:
The key is to take control, and to do so immediately. Cut up the credit cards. Burn the convenience checks. Face your family and let them know that they are more important to you than keeping up with the Jonses. Then go to bed and let it all sink it.
Tomorrow will be the day to begin mapping out your road out of debt – be it on your own, the help of a credit counselor, or a bankruptcy lawyer. But the key is the stop the blood loss now. By doing so, you can begin to clean the wound and heal.
