5 ways personal debt can affect your work, and how to deal with it

By renjith krishnan
By renjith krishnan

If you have debt problems then it’s not just your personal and homelife that can suffer – your work and long-term career plans can also be hit quite hard. Even if you don’t work in the financial sector, your reputation and trustworthiness can be diminished and some promotions or job changes may be closed to you. If you do work in the financial sector, the effects will be even more restrictive.

Money problems follow you to work

Poorly-managed debts don’t just keep you awake at night and cause rows, they affect your performance at work. Not only do they create potential barriers to climbing the career ladder, they can make your current role tougher, too. Your employer may think less of you and you can often feel distracted and stressed; what you need to do in the first instance is to visit Creditfix for help and advice. Having the right people in your corner can help you to feel more in control and, of course, you’ll be more able to resolve your situation.

Your creditors can impose an Attachment of Earnings order on you

If you bury your head in the sand for too long, creditors can apply for an Attachment of Earnings order. This order deducts money at source from your salary and it’s bad news because not only do you lose money before you receive it, but your employer knows all about your problems (and lack of problem-solving skills). Plus, the payroll department has extra work to do because they have to make the deductions, forward them to the various creditors and keep track of them. If they don’t, your company can end up in bother as well as you. This isn’t a great situation for anyone and while payroll will keep it discreet, you’ll still have to pretend not to be avoiding eye contact in the canteen…

Your debts can affect your work performance

Creditors can call you on your mobile or on your company phone if they can’t get hold of you. This is really embarrassing and it also reduces your productivity. You may also be taking on extra freelance work or an evening job to help you to keep up with your debts and while this is in itself a smart move, it could cause burnout. If you wonder what debts can be included in an IVA, you are asking the right questions. Be sure to do your research since not all solutions are created equal.

Some debt collectors will try to contact your employer

Contacting your employer directly is against data protection law, but some collection agencies will threaten this sort of move. Just worrying and waiting for this to happen is bad enough and if it actually does happen, your reputation is damaged for quite some time. People can get into debt through no fault of their own, of course, but if you haven’t tried to resolve the situation yourself, can you be trusted to run a project or even a small budget?

Your debts can prevent you from getting new jobs or promotions

According to Moneyexpert.com, many employers now run credit checks on candidates or on employees who are about to get a steep promotion. You have to give your consent, of course, but if you know that the outcome isn’t going to be good, then you may be discouraged from applying in the first place. This is a great shame if you’re otherwise well-qualified and well-suited to the role and you’ll almost certainly be missing out on a higher salary or pay grade. Why paint yourself into a corner like this? The sooner you get help, the better.

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