Being behind on your bills is tough, although as Freedom Debt Relief customer reviews will demonstrate, debt relief can be a viable option. But did you know that debt can mess with your mental health? It can. In addition to physical problems, you’re more apt to develop issues such as depression, anxiety, and protracted stress. Here’s what you should know about the psychological toll of debt and what you can do about it.
The Issue
If you’re in debt, you have plenty of company. Millions of U.S. residents live with debt, which can negatively affect your mental health. One thing’s for sure, though: ignoring your obligations won’t make them disappear. It could also exacerbate the problem, particularly if you end up paying late or you continue to overspend. While you may not be in the best of moods, grasping the correlation between debt and mental health is a key step toward a more pleasant, debt-free future.
The Effect of Debt on Your Mental (and Physical) Health
Those in debt are more likely to experience stress and other mental health issues. Physical issues can crop up as well, particularly if shame keeps them from seeking help. Heightened stress can hurt their sleep quality, which can have an unfavorable effect on your physical health and hurt your ability to concentrate.
This negative impact can make your financial situation even less manageable. If you’re having mental health issues, it’s likely that you’ll have problems managing your finances. To temporarily feel better, you might engage in “retail therapy” – going shopping when you can least afford it. You may also make imprudent financial decisions such as pulling money from your retirement account to tide you over. Ultimately, all this produces a stubborn cycle. Your situation can result in mental health issues. Such issues can make it even harder to manage your finances, so your debt keeps growing.
Don’t Buy Into Stigmas
It’s common to feel stigmatized by debt, which can cause you to turn away from your obligations. In turn, this can make matters worse.
Remember that scores of other people either have, or have had at some point, unmanageable debt. You should also keep in mind that while some debt is due to poor decisions, other debt is unavoidable. For example, most people don’t have the cash to buy a home outright, which means they must get a mortgage loan. You also may have to borrow money for college or incur debt due to a large medical expense or sudden job loss.
Seek Help
While debt can be deleterious to your mental and physical health, you shouldn’t struggle by yourself. Here are some actions you can take:
- Know where you stand. List each of your debts, including the amount you owe and when each minimum payment is due.
- Check your credit reports. Reviewing your credit reports can help you gain an understanding of your credit history and where your accounts stand. Free reports are available at AnnualCreditReport.com.
- Create a budget. Establishing a budget can help you better learn how much money you’ll have remaining at month’s end to put toward extra debt payments.
- Talk to your creditors. Contact those you owe money to and tell them what’s going on. They may be amenable to working out a new payment plan that you can better handle.
- See a credit counselor. A certified professional can closely examine your situation and tell you the best way to pay down your debt.
- Seek debt relief. Those who have little hope of paying off their debt anytime soon may want to look into a debt relief agency such as Freedom Debt Relief. While it’s not for everyone, it can give you a fresh start.
Summary
Unmanageable debt can wreak havoc on your mental as well as physical health. But remember that you’re not alone and that there are steps you can take to get out of your predicament.
