Warning: Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk

The Downside of Debt


Taking out a loan is something most people have to do at some point in their lives. Borrowing can be a great way to finance a large purchase or tide you over for a time, but sometimes, debt can control you, rather you being in control of it.

If your debts are unmanageable, then life can be a struggle. Not only is it harder to take out a loan and borrow, it can also impact your life in other ways. So we’ve put together a quick guide explaining the hidden pitfalls of debt.

Credit Score

Defaulting on repayments will seriously affect your credit record; so make sure that you can afford to repay a loan.

Securing a Home

Most landlords and property agencies run credit checks, so a poor credit record will affect your ability to rent a property.

Loans and Credit

Having a bad credit record maximises the risk lenders take in lending to you. This makes it harder to borrow and you will be charged higher rates of interest on credit cards and loans.

Car and Phone Finance

A poor credit score makes financing a new car or even taking out a mobile phone contract difficult.


Some employers believe that managing money sensibly shows character, and will now refuse to take on employees with bad credit.
Finally, if you find that you are having problems, and cannot manage your repayments, don’t panic. Taking control of your debts allows you to repair your credit score and life, and there is help available. A good specialist debt advice unit can help you manage your debts and take back control.