How Debt Problems Can Affect Your Career
A majority of young people in the UK are in constant debt. According to a survey of more than 4,000 people ages 18 to 30, it was found that 24% of respondents are in debt all the time, and 48% rely on credit cards, overdrafts, and payday lenders to make it through the end of the month. Being in debt can negatively impact one’s physical and mental health, but did you know that having debt problems can also affect your career? Having a lot of debt can dictate the outcome of your job search, your chances for a promotion, and it may even be a factor whether you can keep your current job. Find out how debt problems can affect your career.
You may be surprised to know that when you’re applying for a job, your CV is not the only thing that your future employer will want to take a look at. It’s likely that your employer will do a background check, especially if you’ll be working in financial services. While this is a common practice in the US for most industries, the UK is starting to do more and more financial checks before they hire. But what does having lots of debt have to do with your capability to do a job? Employers go with the logic that someone who has no significant debt is more reliable and responsible than a person who owes a lot of money. Slowly paying off your debts and getting debt management advice can help to increase your chances of being hired for your dream job.
Have you been overlooked for a promotion again? Before complaining to your boss about it, you may want to review your finances and see how much debt you’ve accumulated over the past months or years. If you work in security, banking, or finance, keep in mind that having lots of debt can be damaging to your career. Depending on how extensive the credit rating and score check is, there’s a possibility that your employer can get a list of every creditor you owe, the size of your credit card limits, and even past credit obligations. No employer wants a problem employee to have more responsibilities at work, especially if those responsibilities involve money.
Keeping your job
You may be a model employee, but being in debt can jeopardize your job, especially if you have to declare bankruptcy. There is a possibility that you can lose your job over this. Moreover, some professions will not hire anyone who has previously declared bankruptcy, even if it’s been years since that happened. If you opt to start a business, it’s likely that you may have some difficulty getting a loan to fund your enterprise.
Being in debt can hurt your career, but you can prevent your financial problems from affecting your professional life by paying debts on time. You can also create an emergency fund, pay your balance in full every month, and avoid cash advances as much as possible. By doing so, you can keep your head above water and have better chances of having a flourishing career.