Is debt the worst thing that can happen to anyone? Probably yes! As far as I think, debt is one of the worst things on the earth one can have. Not only it ruins one's finances, but also it changes the way one looks at life, do things, live life, and so on.

7 Ways debt changes your mind

Check out how your debt is changing your thoughts and the way you live:

1. It makes you think of short-term goals only

You will be forced to think about your short-term goals, even though your long-term goals are more beneficial for you. A fear will work within you that’ll force you to take such decisions. In short, in the fear of getting into more financial trouble, you’ll make some wrong choices.

For instance, as per a new study by NerdWallet and Harris Poll, 68% of student loan borrowers are focused on paying back their credit card or mortgages before paying off their student loan debt.

But, they don’t realize that it’ll make their debt situation even worse. That is, missing out student loan payments will lead to late fees and increase the debt over time. However, by paying the minimum amount per month one can avoid the penalties.

2. It makes you ignore savings

Paying off a debt gives you short-term satisfaction. But, you shouldn’t get too much involved in paying off your smaller dues that you tend to ignore the larger ones.

Many borrowers pay off their smaller dues first, even though it costs more in the long run.

For receiving a short-term gratification you tend to ignore your savings. Since you tend to ignore your savings in order to pay off your debts, it may hamper your future financial security.

As per a study in the Journal of Marketing Research, “you can save more money by prioritizing your debts with the highest interest rates.” Though it’s more manageable to pay back smaller debts first, yet it’s better to repay the debts with the highest interest first.

3. It makes you accept defeat

When you are in debt for a long time, you’re likely to get demotivated and accept your failure. Never become a defeatist and stop trying to get out of debt. As you never know, you might be missing out on new opportunities to become debt free and improve your financial condition.

Interest rates fluctuate and laws change constantly. So, you shouldn’t lose the hope of becoming debt free. Time may not be on your side now, but one day you’ll be able to stand the test-of-time.

First think, where you want to see yourself in a few years from now, and then plan your debt repayment strategy according to that. Also, don’t hesitate to take government aid like the student loan forgiveness program.

4. It makes you feel insecure

You will feel secure and mentally stable once you don’t have debt. But, being in debt will make you feel insecure and mentally unstable. Though there’s nothing to feel safe when you’re in debt. If you’ve been carrying debt for quite a long time, you’re bound to feel threatened all the time. As a result, your financial well-being will be hampered.

5. It makes you irresponsible

Falling in debt in some situations is an act of irresponsibility. Though you have available credit, but staying within your means is your responsibility.

Taking your credit cards as granted and not paying bills within the given time (even if you can) is a sheer act of irresponsibility.

If this attitude toward your finances continues, your monetary future will be in trouble soon.

6. It doesn’t let you follow your dreams

Everyone has a dream of living a stress-free and a debt free life. But, when debt becomes a problem, it compels you to forget your dreams and makes you think about your survival only. In short, debt is a sure shot dream-killer.

7. It makes you feel depressed

If you are not being able to become debt free, you’re bound to get depressed. If it continues, you’ll be driven by depression in every walks of life. Hence, you won’t be able to succeed in things you do.

Don’t let debt overpower your mind. Instead, try to control your mind the way you want. You can always consult a financial expert if you need help. But, never lose hope and try to fight with your problems. Because remember, “every dark cloud has a silver lining.”

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