While most households across the country carry debt, there are many that simply carry too much. Excessive debt can do a lot of damage to individuals and to families. Here are some of the negative effects of having too much debt.

1. Poor credit score. Most people who have too much debt have several lines of revolving credit open. Translated, this means they have too many credit cards with balances approaching their credit limits. Individuals with this problem will spend years trying to pay off each card. Consider a car title loan from Embassy Loans of Florida to consolidate debt and pay it off quicker.
2. Inability to borrow when needed. Because carrying too much debt reduces one’s credit score, it will be very difficult to borrow to buy a home or car. Again, individuals with poor credit can use a car title loan to consolidate and pay off some or all of their debt.
3. Foreclosure or eviction. When you have too many debts to pay, there may come a time when you cannot pay the mortgage or the rent. Missing too many payments can lead to foreclosure proceedings or to an eviction. If you own a vehicle that is paid for, you can use a car title loan to access quick cash to help you meet your monthly financial obligations.
4. An amazing amount of stress. Not being able to pay your bills is emotionally trying. There will be harassing phone calls from creditors and daily mail to remind you that you are past due. Often, people cannot seem to find a solution to their debt problems and are overcome by anxiety.
5. Bankruptcy. Filing bankruptcy is often the only way for an individual to save himself or herself from financial ruin. By filing, individuals can protect themselves from creditors. Homeowners can protect themselves from foreclosure and even keep some of their assets. Still, a bankruptcy leaves a black mark on a person’s credit history for many years after filing.

While carrying some debt can actually be good for an individual, having too much debt can lead to financial problems that can plague someone for their entire life. If you are a homeowner, having a mortgage and making the payments on time is considered good debt. Be sure to maintain a happy medium between good and bad debt and make your monthly financial obligations without causing one of the problems listed above.