What is a common consequence of having debt?

Having debt can often lead to stress for individuals. This stress can stem from various factors, including the pressure of making monthly payments, the concern over accumulating interest, and the anxiety associated with financial instability. When debt levels rise, individuals may feel overwhelmed by their financial obligations, which can impact their mental well-being. This stress can also affect relationships and overall quality of life, making it a significant consequence of debt that many people experience.

In contrast, while debt might seem like it could enhance purchasing power by allowing people to buy items they can't afford upfront, this can lead to long-term financial difficulties if not managed properly. Similarly, debt can impact credit scores both positively and negatively, depending on how it is managed, rather than simply improving it. Lastly, accumulating debt does not always lead to wealth; in many cases, it can hinder financial growth and prevent individuals from achieving financial independence.