Question: How does debt affect my employment, and will we ever see a debt free America?
Answer: If our nation was debt free, we would seldom ever hear the words ‘recession’ or ‘depression’. As long as people, and our government, fail to manage their expenses or budget according to their means, the risk of financial ruin remains.
Debt has the ability to negatively impact many areas of a person’s life. Whether you seek to purchase a home, go back to college, or find a new job, debt and bad credit can reduce your chances of success.
"Everyone who got where he is
had to begin where he was.”
- Robert Louis Stevenson |
In addition, most people go through life completely unaware that debt can affect their future employment prospects.
During pre-employment screening, potential employers perform background checks. Many people think of background checks as an examination of felonies or misdemeanors, or merely past job experience.
However, you may be required to sign a waiver that will allow them to pull your credit report. If they examine it and find that you owe large debts or are behind in your payments, they may use the information as grounds to not offer you the job.
Many employers see debt, or the inability to handle money as a character flaw. So keeping your credit report in check is important.
A debt free America would certainly set a strong example for our citizens and would erase many of the problems that we continue to experience. The debate on the financial stability of our country and the typical American household is one yet to be settled.
Just as employers consider bad credit or large debts to be a sign of irresponsibility or bad judgment, trading partners and other countries sees America’s hunger for debt to be a flaw in it’s character. They see the US as spoiled and undisciplined, certainly not moving toward a debt free America.
Critics will continue to argue the pros and cons of how America should spend money. Employers will continue to wrestle with the level of importance one’s credit history has on their ability to perform their job.
Certainly there is drawback the American worker may face. If employers reject candidates on the basis of debt it can lead to a vicious cycle. A person needs income in order to help pay off their debt. However, if they are unable to secure a job due to that very same debt, they find themselves in between a rock and a hard place.
The debt does not get paid, and their credit history becomes worse.
Keep in mind that not all employers may use credit history as a means to decide who to hire. Certain jobs, though, will have tight standards – and if it comes down to you and another equal candidate with better credit – it could make all the difference.
If you hope to secure a position relating to finances, such as a cashier, financial planner, or payroll manager, the result will not likely be positive. Your poor credit history will say loud and clear that you are no expert with money, therefore you should not be advising others, or serving in a money-handling capacity.
Likewise, employers are not always necessarily looking for credit issues. Even if this was a debt free America, background checks would still be necessary to minimize risk to the employer.
Hoping for a debt free America may be a pipe dream, but there is no reason to begin moving toward a debt free life.
Perhaps your government will actual learn from it’s citizens if we act first and lead the way.
|
"Money is better than poverty, if only for financial reasons."
- Woody Allen |
|
Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
