5 Ways Debt Can Affect Your Career
Building a long-lasting and flourishing career is no easy feat. Besides an unwavering pedal-to-the-metal attitude and productivity-centered mindset, you must possess the necessary training and qualifications to advance in the corporate environment, fueled by a survival-of-the-fittest approach.
For many graduates entering the modern workforce, securing a high-paying job can feel like doggy-paddling with an anchor tethered to your ankle. Unfortunately, external certifications and education course requirements can weigh down diligent applicants hoping to lap their competition, leaving thousands of hopefuls unemployed. Depending on your chosen industry, you may also encounter unanticipated problems like technological shifts and ever-evolving landscapes.
On top of the challenges mentioned above, debt often serves as yet another hurdle for budding professionals to clear. The top culprits of excessive personal debt include unemployment, divorce, and a lack of self-control. Not setting monetary goals or maintaining a budget can also contribute to financial issues down the road.
While accrued debt is a deeply personal matter to most, unpaid student loans and credit cards can obstruct candidates from journeying down the path to success. That said, you’ll need to adopt these debt-fighting best practices to ensure the sky is the limit in your professional life.
Where to begin
While tackling debt can be overwhelming at first, there are several ways to pay it off successfully. Making an effort to stop accumulating additional debt is necessary before actively employing these debt-fighting strategies. After swearing off reckless credit card purchases, you can increase your monthly payment, withdraw from your retirement fund, or choose to ask your creditor for a lower interest rate. Other strategies include enrolling in credit counseling and targeting one account at a time until all you make a sizable dent in your current debts.
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When dealing with excessive amounts of debt, it’s challenging to leave your worries at home. You might find that financial stress consumes most of your thoughts and impacts your productivity. Even worse, debt-related concerns can make you prone to errors and mistakes, potentially threatening your career trajectory.
Personal financial matters may creep into your workday in sneaky ways. For example, creditors might inundate you with phone calls or contact your boss in an effort to reach you. This scenario is embarrassing, to say the least, and it may also negatively influence your work relationships. Chipping away at your debt will alleviate this issue and prevent distractions from hindering your career.
If you don’t make your payments on time, creditors may be able to garnish your paycheck. Besides creating extra work for the payroll department, this situation could end up marring your employer’s image of you. He or she may start to believe that you’re dishonest or untrustworthy. Consequently, a negative reputation will limit your chances of being recommended for bonuses, receiving a raise, and being considered for a promotion.
Obsessing over financial woes can easily keep you up at night. Unfortunately, insomnia and sleep disturbances may lead to dangerous situations, including rattling conflicts on the road. Thousands of car accidents each year result from people driving while drowsy. By coming up with a plan to eliminate your debt, you’ll feel more empowered and less riddled with financial worries. Additionally, a good night’s sleep will ensure that you stay alert behind the wheel.
Limited job prospects
When you’re up to your shoulders in debt, you may find yourself forced to accept the first available position that comes your way. Having to satisfy your creditors instead of pursuing your dream position can leave you frustrated and defeated.
To make matters worse, some employers can view credit reports during the background check process, reducing your prospects even further. Selective hiring managers might reject applicants with a record of claims judgments, late payments, or defaults, regardless of how impressive the candidate is.
Prevent these worst-case scenarios from unfolding by facing your debt head-on. Remember, tiptoeing around your financial distress will only detonate a ticking time bomb.