We all try to keep our professional lives at work and our personal lives at home. It’s a basic tenet of professionalism. That said, it’s rarely that simple. You’re only human after all, and however hard we try to compartmentalize our emotions, there’s always going to be a little bleed between the personal and the professional. Have a big fight with your spouse and it’s hard not to let it affect your performance at work the next day. If your kid falls sick, the presentation that just yesterday occupied your thoughts completely seems so insignificant that your approach to it becomes cavalier.
As hard as we try to maintain this balance, personal debt can not only be a huge personal worry, it can impact on your career in unexpected but potentially ruinous ways.
It can lead you to compromise on your career options
Your parents likely told you that finding a career that makes you happy is far more important than monetary gain. And they’re completely right! The trouble is that the baby boomer generation didn’t have the deck quite so heavily stacked against them as the millennial generation. They didn’t face the challenges of an over crowded and fast evolving job market. They didn’t face the staggeringly high cost of living that will make today’s twenty somethings much less likely to own their own property and they likely didn’t start their careers with the crippling student debt laden on the younger generation. This debt (among other personal debts) could prevent young people from pursuing their dream jobs in rewarding but low paid sectors like the arts or non-profit in favor of higher paid but soul crushing corporate jobs.
Debt can make you less employable
Many desirable jobs now involve heavy background checks on candidates but these increasingly include credit checks. According to CNN 34% of employers perform a credit check on some employees while 14% perform a credit check on all employees. Thus, poorly managed personal debt can impede your ability to secure your dream job. Fortunately, your debt’s impact on your credit rating is fairly easy to manage. Consolidating your debts improves your credit as all of your existing debts are replaced by a single debt. Check out debtsettlement.co for a range of debt management solutions. There’s even a side-by-side comparison for your convenience.
Bankruptcy can cause you to lose your job
Bankruptcy is a scary prospect but it isn’t necessarily the end for you. Indeed, some of the world’s most successful entrepreneurs (including the current President of the United States) have been declared bankrupt at least once. While in most cases, seeking debt solutions such as bankruptcy will not impact negatively on your career, there are some areas in which it can impede your progression or even result in job loss. Bankruptcy can prove fatal to your career if you are:
- A charity trustee
- A lawyer
- An estate agent / realtor
- Company director
- Insolvency practitioner
Notwithstanding the emotional and psychological drain that debt presents, it’s important to borrow smart and keep your debts under control before it ruins your career.