No one likes being in debt, it just is not a good feeling.
Many describe it as feeling like a weight is on you, bearing down on you all the time.
There can be the constant worry as to if you will receive collection calls, text messages, emails, letters in the post, and the worry what if someone finds out???
There can be a stigma attached to being in debt, even if you are making payments on time. You know you owe money, no one else does except for those you owe.
It can be a very stressful time.
Financial stress can cause illnesses, and also breakup relationships.
But does being in debt show bad character???
Debt = Bad Character
The answer to this equation is no, being in debt does not show bad character.
It may show poor personal financial skills, it may show misuse of credit, and it may show a lot of things, but one’s character is not on trail just by being in debt.
However, in some instances, there are those that may feel the opposite.
Employers: There are certain jobs and some employers who use credit history and credit scoring as a part of the hiring process for employees.
Some jobs such as those that require handling cash, working in a bank, dealing with financial transactions, one can understand why a perspective employer may look at a potential employees credit history as a part of the hiring process.
However, there are other jobs, such as those with security clearances, and other high level requirements, where a credit check may be done as well.
This can be viewed as a character reference by some, and is there really a link between a good employee and someone who may struggle to pay their bills?
Some employers say and feel yes, and someone with a credit history that is less sterling than another person applying for the same job, may not et that job.
Home Office: When applying for many Visa’s to enter and stay in the UK, there are some questions related to personal finances, these are usually limited to being able to show you have a job, are working and supporting oneself.
For some spouse Visa’s, the sponsor may need to show they are able to support their new spouse they wish to have enter the UK.
If you want to receive citizenship in the UK, a part of the application is a “good character requirememts”, one that looks at your character.
This clause is broken down into two areas, one is mental health, are you of sound mind, and the other is of a more criminal nature, and also eludes to some “financial soundness”; such as CCJ’s, unpaid debts, owing taxes, etc.
So there is a possibility that being in debt could be seen as of not being of good character.
In researching this, it was found that if a person who is in debt, and may have judgments against them, would still pass the good character and financial soundness test, if they were dealing with their debts.
I they were in a debt management plan, or some other form of repayment, it is then thought that are dealing with the issue, which is of good character.
Being in debt is not a character trait, and owing money, being in debt, and even being insolvent, is not due to bad character. It can be down to bad luck, poor money management, even misuse of credit, but it is a hard line to cross to show being in debt is of bad character.