6 Types of Debt that Often Ensnare Employees

  Debt is always a burden on finances, especially if the amount is large. Debt can also ensnare anyone, including employees who basically already have a steady income every month.

Poor financial management system is one of the reasons behind this condition. This will even get worse, if it turns out that the debt is burdened with a certain amount of interest and other costs that will make the principal even bigger. 

6 Types of Debt that Often Ensnare Employees

Adequate income does not necessarily make employees debt-free. Basically, whatever income is earned every month, ideally the amount should be able to meet all needs.

But in practice, various reasons are often a trigger for the emergence of debt among employees. Not just one type, employee debt can even consist of several different types at once.

The following are some types of debt that often ensnare employees in financial problems: 

1. Credit card debt

The use of credit cards is certainly no longer a strange thing among employees, especially those who are still young. This one financial product can indeed provide many conveniences, including advantages when used appropriately.

Beyond all that, credit cards also risk making a person more consumptive. How not, employees will freely buy anything as long as they have a limit in their credit card.

The use of credit cards that are unplanned and only consumptive is a mistake that often makes employees entangled in debt. The value can be large, depending on the limit and usage itself.

In addition, this one product also applies interest and other costs that cannot be taken lightly. If you fail to pay, the interest will make the number of bills swell.

2. Cooperative debt

For employees who work in large companies and already have cooperatives, this one debt is also often a temptation in itself.

In addition to providing various needs at a fairly cheap price, usually the company's cooperative will also provide savings and loan services. Employees can access these loans easily, especially if they have worked long enough in the company.

Although cooperative loans set a fairly small interest rate, this debt will certainly still burden if the principal amount of the loan is large. Ease of accessing cooperative loans and various needs there can make employees accumulate debt.

If this is the case, the salary cut every month will also certainly get bigger, so that the salary taken home is less and less.

3. Kasbon

Still in the company, this one debt is also often a bond for employees. There are many companies that allow their employees to do kasbon, where the concerned can apply for a loan.

The tenor of this kasbon usually varies, depending on the company's policy. Although the interest is small, usually the value of kasbon is not more than 1/3 of the employee's salary amount. Kasbon will certainly be a burden for finances and can make employees entangled in debt.

4. Consumptive goods credit

Buying various consumptive goods by way of credit can also be a trigger for debt that ensnares employees. There are usually many sales or people who offer credits of various products to the company, for example: smartphones, pots, blenders, and others. 

Buying in installments is initially fairly easy. But if you apply for too much credit, purchases like this can also ensnare employees in debt. 

5. Paylater debt

This type of debt is relatively new and is being liked by many people, including employees. Paylater is a means of payment that allows users to make payments or buy various goods with limits in it.

Once practical to use, this product can even be submitted so easily and quickly as well. Behind all that, paylater applies high interest and can make its users more consumptive. 

6. Friend's debt

In addition to the five types of debt above, debt to friends is also often a problem for employees. The amount of debt this one also varies, but it could be so large.

Many reasons are often made to get a loan from a friend. Whatever the amount, debt like this can make finances problematic, even friendship relationships can also become worse along with the increase in debt. 

Beware of Debt that Often Ensnares Employees

Having debt may be common, but that doesn't mean it needs to be done. If you are not forced once, avoid various debts that are not important, especially for those of you who are employees. Manage finances properly from the beginning and be aware of various debts that often ensnare employees, so that you do not experience financial problems.