Why Is Debt Important?

While most people have some debt, typically the importance of that debt is in direct proportion to the amount of debt they have. As the amount of debt that you have grows, you can find that your debt permeates every aspect of your life. While some debt, such as a mortgage, business or automobile loan, can show stability and maturity, having more debt than you can pay can affect your health, relationships and your employment.

Home Ownership

Typically, you will have to go into debt to afford a home. Aside from being the so-called American Dream, home ownership can show that you are ready to settle down and begin a family. Owning a home can also be an investment and show that you are considering your future. You will have to build your credit history to obtain a mortgage. High credit scores are dependent on proper management of debt, including a low debt to income ratio and making timely payments.


As of 2009, the average cost of tuition and fees at public universities was $6,319; room and board added another $7,938 to the cost, according to the National Center for Education Statistics. Debt, or the ability to obtain loans, is important if you plan to pay for college. The federal government provides financial assistance to individuals who need help paying college expenses. The Free Application for Federal Student Aid allows you to apply for grants and loans in one application.

Too Much Debt

Too much debt can lead to health issues. Not only can your physical health suffer, but the health of your relationships with you spouse and children, as well. Too much debt can cause stress, which can lead to insomnia, fatigue, depression and heart disease, according to research from Dartmouth College. Taking advantage of counseling agencies to learn strategies to reduce your debt can ease your stress and help your health and relationships.


Only you can decide if your debt level enhances or harms your life. Finding a middle ground between the two can be difficult but it is not impossible. Various agencies and organizations provide services that will help you learn to control your debt. If you are having problems paying your existing debts, early intervention can prevent judgments, liens and possible bankruptcy.