Credit card debt has become a normal part of Canadian life. Although the stats vary a bit depending on which study you read, 40% to 50% of Canadians carry debt on their credit card. According to a recent Ipsos Reid poll, this trend has not improved over the summer, and as the season comes to a close, almost one third of Canadians (29%) are carrying more debt than they did in May.
At Grouplend, they see this accumulation of credit card debt first hand. Over half of their clients come to their platform looking to consolidate their credit card debt at a lower interest rate and get themselves out of the vicious cycle that comes with carrying a balance on their cards.
Credit card debt doesn’t just have financial ramifications, it can seriously affect you in other ways, as well. Here are seven ways that credit debt can impact you:
1. Increases anxiety and depression
A 2012 study from the University of Nottingham found that people who struggle to pay off their debts are more than twice as likely to experience a host of mental health issues, including severe anxiety.
2. Increases blood pressure
A 2013 study conducted by McGill & Northwestern University showed that young, otherwise healthy individuals, who also had higher amounts of debt, had a 1.3% higher diastolic blood pressure reading. Although that may not sound significant, a blood pressure increase of 2% increases your risk of stroke by 15%.
3. Reduces sex drive in men
The stress caused by credit card debt can lead to a significant decrease in sleep, as well as lower testosterone levels, both of which have been linked to significantly reduced sexual desire in men.
4. Prevents you from getting healthy
People have a difficult time improving their physical health when their financial health is in peril. A 2013 study from the University of Michigan showed that people who have high levels of credit card debt are less likely to visit the doctors office for check-ups, or when they are sick.
5. Hurts relationships
A 2013 study by Kansas State University states that arguments about money are the top predictor of divorce. Similar studies from the Royal College of Psychiatrists have concluded that households with high amounts of debt struggle to maintain their relationships.
6. Decreases productivity at work
According to a study by the American Psychological Association, over 64% of graduate students reported their ongoing concerns over debt prevented them from operating at an optimal level. This decrease in productivity can be exacerbated when the employee feels resentment towards their company when they feel they are being underpaid.
7. Kills your credit score
High credit card debt, especially if you start to get behind on payments, can cause a person’s credit score to plummet. This can have long term effects on your ability to obtain credit to buy a car, obtain a mortgage, or in some cases, even rent an apartment.
Credit Card debt is a scary thing that many Canadians are dealing with everyday. At Grouplend, they are offering Canadians a way to get out of debt faster and save thousands of dollars. Their custom-built technology significantly reduces the cost of banking, which allows them to pass those savings onto you. Want to see how much you’ll save? Click here to check your rate – it only takes one minute and it won’t affect your credit score.