For many their cellphone is a staple of their everyday life, and not paying your bill can lead to a number of consequences such as debt collectors coming for the money or your pan being canceled. However, falling behind on your phone bill can impact your life in many ways besides your phone being cut off.
Your phone bill is often ranked as one of your priority bills, but if you default it will likely be sent to a collection agency. These companies will write to you, call you and sometimes even turn up at your door to try and make a payment plan. This can have a knock-on effect on your other finances because you have to cut back elsewhere to cover this which may leave you short for other priority bills.
It is also common for people to charge their phone bills to a credit card because they do not have the funds to cover it from their own income. According to an article by Global News, 31% of Canadians say they do not earn enough money to cover their bills and debt payments. This often means they have to look to other forms of credit such as loans or overdrafts to allow them to get by and it becomes a merry-go-round that you can’t get off.
Mental health is a hot topic all over the world, and according to the charity Mental Health Research Canada half a million people will miss work each week due to their mental health. This often cause people to fall further into financial struggles because their income will be impacted.
This in turn can lead to heightened feelings of stress, anxiety and irritability. Many who are dealing with debt and mental health struggles also find it very hard to bring the topic up in conversation which can cause feelings of loneliness and worthlessness.
Your phone is often how you keep in touch with your friends and family, especially if you live far away from them. Falling behind on your bill can lead to your contract being cancelled and your phone being cut off, leaving many people uncontactable when it comes to work or appointments.
It has also been found by Manulife Bank of Canada that 1 in 5 people try to avoid the topic of money altogether which can cause tensions within personal relationships which ultimately can lead to them breaking down.