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How Debt Can Affect Your Life


In almost every circumstance, I am a firm believer in living without debt. I wish that I would have worked harder when I was in college. I could have worked another job in the summer and made enough to cover my college expenses. I’m almost sure of it. Instead, I came out of school with debt, and so did my wife. Together, we were in the hole $18,000 . It’s amazing how debt can affect your life!

Debt Causes Stress

My wife and I soon realized that it was time to pay our school loans – the letters were coming in the mail reminding us that the payments were beginning. The only problem was, we were fresh out of school and only one of us found a job. Money was tight and stress was on the rise.

We wanted to pay our debts, but we never imagined that it would be so difficult! If we decided not to pay, there would be large penalties, and if we deferred the loan, the interest would continue to build anyway! It seemed like a no-win situation.

Stress Causes…. 

Basically, when there is stress in your life, you can count on your life getting worse. Since debt and financial matters are often a cause of stress, do your best to alleviate yourself from its grasp!

Debt Sparks Uncertainty

Debt has a way of draining our passion on life. If we have debts that never seem to go away, we begin to doubt our abilities.

“I wonder if I’ll ever start saving for retirement.”

“I wonder how everyone appears to be rich, but I’m still broke”

“I don’t think I’ll ever get out of debt. I may as well stop trying.”

If you find yourself thinking this way, please STOP! Do you know how powerful the mind is? I could probably start a whole other website on just that one topic. If you begin to accept the fact that you’ll be broke forever, then guess what? You will…..

If, however, you decide that you can whoop debt in the butt, then you will! Do not give up hope. If you’d like some help getting started, take a look at my personal story and learn how to get out of debt fast! Also, take a look at How to Get Out of Debt in 2011.

Debt Takes Away Your Freedom

The cause of debt that I personally hated the most was the lack of freedom it left me. Let’s say you want to go on a vacation! Well, you probably shouldn’t because you have $8,000 in credit card debt already. Maybe you’d like some new furniture… oh wait, you still owe money on the furniture that’s sitting in your living room. Perhaps you’d like a different car! But, you are still making payments on yours so no one will buy it from you. Really, the only way to get another one is to trade yours in at the dealer….but they’re sure to give you as little cash as possible.

Debt really limits what you can do in life doesn’t it?! Imagine the feeling of freedom you’d get if you didn’t owe a penny to anyone! Let me tell you, it’s wonderful. There’s suddenly extra cash at the end of the month, and you weren’t even thinking about saving.

More Information and Debt Help

What are Bailiffs?

Get Out of Debt Money


My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.


  1. “Debt Takes Away Your Freedom” that’s a powerful statement and very true. I would also add ‘debt is expensive’! The more you wait, the more interest you pay that you could be saving.

    • Debt certainly IS expensive! That interest doesn’t seem like that much at first, but over time, it really adds up. Plus, it takes away from the money that you could have been investing!

  2. I’ve been very lucky to live at home and pay for most of my schooling through scholarships with a little assistance along the way from my parents. I’m also very lucky to have seen the impact debt can have on a person or family at a young age and decided that I would try to live as debt free as possible.

    The quote that really stuck to me in your post is “Do you know how powerful the mind is?”. It’s a very good question and something I hope to write about soon on my own blog.

    Great post and I hope other readers will take away from it as much as I did.

    -Ravi Gupta

    • I’d really love to read your post on the power of your mind. Let me know when it’s up! 🙂

  3. I never really thought that the debt was as powerful as you described here, but now I agree. Debt really does take over your mind and can change your thoughts about purchases or any money spending practices.

    • It’s crazy huh? Everyone always seems to be ok with debt on the outside, but really, it’s eating away at everyone.

  4. You will also sleep better when you are debt free!

  5. Cant say Ive ever had any suicidal tendencies, but I definitely agree on the increased stress level, irritability, and headaches! Even while you are paying it down frequently and efficiently, still seeing a balance of any type of debt can play havoc on your nerves.

    • Yep, the stress level definitely goes up when there is financial strain.

  6. I agree 100%. Debt is the modern day form of slavery and let me tell you – it ain’t pretty. I can’t wait to owe no man NOTHING!!! but the debt of love. Great post!

    • Slavery is a good word for it for sure. Good luck paying off the remainder of your debts! It’s a great feeling to get out from underneath the “debt cloud”!

  7. Not only can debt be very stressful on your personal health but it can also cause tension in family relationships. I think your mindset also plays a huge part in life. You have to have faith in yourself that you can and will improve your situation and follow this belief up with actions. If you feel hopeless you will never take action to change your life.

    • Great point Jackson. If the feeling of hopelessness creeps in, the giving up entirely soon follows. We must always look at the positives in life in order to continue succeeding.

  8. when i was up to my nose in debt about 5 yrs ago, all that you stated above happened to me (except the suicidal tendency) and i have to say that was the most painful and stressful time in my life. I would never wish that upon anyone else. Learning how to manage the debt level down, staying focused and discipline is definitely the way i would recommend. And most importantly, do not beat urself up over it. There are only mistakes, no regrets. Take responsibility and act upon it step by step. Great post!

    • Nice words of wisdom B Kelly! It seems that everyone with debts plays it off like it’s nothing, but inside, they are hurting!! Thanks for sharing!

  9. It’s a very good question and something I hope to write about soon on my own blog. Thanks for sharing! Good luck paying off the remainder of your debts! Plus, it takes away from the money that you could have been investing!

    • Hi Nola! At this point in our lives, we are actually debt free (outside of our house)! Plus, we have a plan to get rid of our house debt in the next 4 years. At that point, I’ll be completely debt free and 30 years old! It’s going to be fun! 🙂

  10. You have to have faith in yourself that you can and will improve your situation and follow this belief up with actions. I can’t wait to owe no man NOTHING!!!

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