Credit card debt
can have significant negative consequences on an individual's financial health. One of the primary impacts is the damage it can cause to one's credit score
. A high credit card balance and missed payments can lead to a lower credit score
, which in turn can make it more difficult to secure loans, mortgages, and other forms of credit in the future.
Additionally, the high interest rates associated with credit card debt can lead to substantial financial strain. As the interest accumulates, it becomes increasingly difficult to pay off the balance, and individuals may find themselves in a seemingly never-ending cycle of debt. This can result in stress and anxiety, which can further exacerbate financial troubles.
Finally, credit card debt can also limit an individual's ability to save for important financial goals, such as retirement, buying a home, or starting a family. This can lead to a lower quality of life and reduced financial security in the long run.