When a person or organization burrow some amount of money with an interest rate and committed to paid back in future is called a debt. It can be unsecured or secured loan. A person can take the loan for any purpose but after completion of that period, he needs to pay it back with the decided interest amount. Sometimes people think little debt will not cost more but it gradually increases along with the increasing amount of interest and becomes a big debt. For an instance, when you make a small purchase by using a credit card then after a short period of time this amount becomes bigger because of the addition of interest rate. Even the licensed money lenders are also giving money as a low interest rate loan within a particular interest amount. The borrower needs to pay the total amount along with the interest amount. In this article, we are going to discuss the top 9 reasons for which the debt is bad for you.

1. Debt encourages you to spend more than your budget

It is a major fact about the debt that it convinces you to spend more amounts on certain even when you cannot afford them at all. When you have debt option you get more excited and attracted towards new things and try to purchase them without thinking about the interest you will pay in future for this. When the time comes for payment you will realise the value of that money you spent on these unnecessary things. In this term debt is definitely bad for you.

2. Debt will definitely hurt your credit score

If you start comparing original loan balance and credit limit with your available debt amount then you will get to know that your credit score is very low. Even if you are not purchasing your loan amount or credit card, still your credit score will definitely affect the cost of the product and service you have taken before. You should Stay Away From These Mistakes that Ruin Credit Score in Singapore

3. Debt is using your future earning

Whenever you use a credit card or take a loan you are actually borrowing that money from your future earnings. Just imagine you
are spending that amount which you are going to earn in future. If you are borrowing the money from a professional money lender then it won’t affect your banking status but it will definitely affect your financial status.

4. Any kind of debt will charge you

You are signing a loan amount or you are using a credit card for your shopping, any kind of debt it will be you will pay a big amount for that. There is nothing free available for you. Normally, you pay a particular pricing amount while creating the debt. In the future, that amount will deduct in the form of interest. The late you are planning to pay, the interest rate will be higher and the load of the debt will be higher accordingly. In such case, the only option is zero percent credit card or interest-free loan but those are also available within a limited amount and can be easily lost in case you default any of your pay.

5. Debt keeps you away from achieving your economical goals

When you are paying your debt amount monthly it will reduce the other expenses that you are planning to spend on other important things. So the more debt you take the more month installment you need to pay in future. So you will not able to fulfill the wish and desire of yours and your family as well.

Even though debts can block or hinder the progress of your economical goals, however, you should not give up. You can simply follow these easy 20 steps to save up and work on your economical goals.

6. Highest interest rate can double the product cost

When you purchased something by using your credit card and you are not able to pay the amount for a longer period then imagine the total payment you paid with interest are really the same values of your purchasing product. It will definitely the bigger value then your product cost.

7. Debt can cause health problems

When you have any kind of debt, it will definitely bring stress to your life. Because every day you only thinking of how to clear the payments very soon. The stress that you get from debt will cause severe health problems which include migraines, ulcers, depression and even some time heart attacks as well. So to take care of health and make yourself relaxed you need to avoid such debt which is really bad for you. That is why it is necessary to keep money aside as emergency funding as you won’t know when you will need it.

8. Debt can affect your marriage

Debt can bring unnecessary pressure which affects your other household expenses which automatically creates lack of finance for your family. It brings unnecessary arguments within your family. In some marriages, the small fights turn into the bigger one which causes to a breakdown of marriages.

9. Debt can keep you away from owning your dreamland or house

While planning for a home loan the bank verifies auto loan, credit card loan and student loan details. If your status is clear and you don’t have such loans then only you will be eligible for the home loan. In case of any kind of debt the bank organization will not allow you to any kind of loan. In such case, if you are planning to own a home through bank load then your dream will never fulfil. So before that, you need to clear all your debt.


Any kind of debt either taken from the bank or any money lender or a professional organization, it is not good for anyone. So
try to lessen your burden on debt and avoid borrowing money for any kind of purpose. Sometime due to some urgent or critical situation, we may need money that time if you cannot manage them borrow from any source but try to pay it back before the committed time frame. The fast you pay your loan the fast you will get relaxed and will able to concentrate on your other requirements. So for that, you need to plan every of your expenditure properly so that you can enjoy everything within your budget and you will not require any kind of debt in future.

Retrenchment is an everyday occurrence, especially in today`s current economic climate. It’s not something that only happens to people you know – NO – it can happen to you too. Have you ever sat down and thought what would happen to you or your family should you lose your JOB or income? Do you have a plan “B” in action? And how will you overcome something like that? For years now, people have started to realize there is no such thing as “job security” anymore. Company downsizing, acquisitions, and retrenchment seem to be commonplace. People continue to wonder if there is an end in sight. On the upside of this, it’s good to know what to do in the event it should happen to you. Here are the top tips:

Have a financial nest egg

There are so many people that don’t think about having money set aside in case they are part of a company layoff. This is one of the most important tips for surviving a layoff. You will need money to purchase the basics such as food, gas for your vehicle and paying bills. The ancient rule is to have at least three to six months worth of funds available in the event of something like this.

Better yet, try saving at least a year’s worth of funds there is also financial institution such as money lender in Singapore that can also be of great assistance a time like this.You will need to reorganize your finances. Make a list of the things that you need and the things that you can do without. Let your family know that there will be sacrifices everyone will have to make. Ensure them that everything will be okay.

Stay Positive

As you know this is easier said than done. However, your family needs to know everything is going to be okay. If you worry, they are going to worry which creates a lot of negative energy. This is the time when you will need to become focused. Now that the first reaction of shock is over and reality has set it, it is time to think clearly about what to do next. Remember that your time is yours now so take a week or two to look at your situation. Look at where you were before, where you were heading and where you would like to see your self. Be bold and think outside of the box you will be surprised at what you come up with.

Severance pay

Back in the day when people were being laid off, it was almost certain that they would get a severance package if they had worked for the company for a significant amount of time. The amount of pay would depend on how long they worked at the company. If your employer doesn’t mention it, ask them about it. Being able to get severance pay from your employer would ease the financial strain of surviving a layoff.

Look for employment

Unless you have a nice nest egg stashed, you must pound the pavement to look for another job. Attend job fairs and the unemployment office to get leads. It’s not an easy task, but you have to persevere and keep going. It’s important to be optimistic and hopeful even though it seems like it’s bleak. Surviving a layoff emotionally can boost your spirits and eventually, you will find employment elsewhere. When you get laid off from your job, your health insurance goes with it.

Go to the unemployment office

This is a step that you need to do as soon as possible and to get it out of the way. This will provide that extra income you may during tough times. Make sure your company has provided you with all the necessary paperwork, such as layoff notice/separation notice. Even if you don’t get severance pay, you will at least need to file for unemployment benefits.

This can help to tide you over while you look for another job. You will have some finances coming in. The sooner you file for unemployment benefits, the sooner you will start getting them. The amount of money that you would get is based on your previous salary. This too would help to ease some of the financial strain of surviving a layoff.

Consider a Career Change or Start a Business

Did you ever think that this layoff could be a blessing in disguise? You may have considered it before. However, you never pursued it because you had a job and didn’t have the time. There are several businesses you can start online for very little money. Do some research and see what you come up with.

Out The Box

For years you worked and lived in a box molded by your career and income. Now that you are retrenched you can break free of that mold and kick down those walls.It sounds and feels strange, but the reality is that you are now free, free to make your own choices free to live your life without any boundaries. This is the time to be creative so put your thinking cap on and think beyond those walls and boundaries.The best would be to take a pen and paper and start writing down your thoughts, break it up into the past and future, each with positive and negatives. WOW crazy! The past has more negatives, and the future has more positives.


In conclusion to all the above one can safely say that you are retrenched, but that does not mean total meltdown. There are effective ways to overcome retrenchment and job loss, and you do have choices, but it all depends on how you will use and leverage your choices. Each person’s needs are different, and only you will know what your needs are and what the solution will be, but the approach to the solution is always the same. Surviving a layoff is not easy for some people that are out of work. However, if they have families, they have to do whatever it takes to bring money in the home.