Nobody likes to be in debt. Unfortunately, most people will accrue debt from car loans, home mortgages, student loans, and credit cards. If that isn’t bad enough, you may accrue debt from something you have no control over, such as emergency medical bills or car repairs.
Everyone will have to borrow money to pay for something important they cannot afford. However, accumulating too much debt from different loans and credit cards can become too overwhelming for you to handle. You may even begin developing feelings of stress, anxiety, and depression from all the financial strain you’ve incurred.
The Impact
Do you want to know the extent of the impact that debt has on mental health? Here is an overview of the effects below:
1. Constant Stress and Anxiety
The financial burden associated with debt may weigh on your mind day and night. You may consistently worry about how you will make your monthly payments and deal with all the high-interest charges associated with your debts. It is even worse if you have already missed payments and must deal with the creditors calling around the clock.
The persistent stress and anxiety you feel will diminish your quality of life. You will be incapable of joy or happiness until you can pay down your debt significantly. Sadly, there is no telling when that will happen.
2. Frequent State of Depression
Prolonged stress and anxiety will eventually cause you to develop long-term depression. You will feel sad and hopeless about your financial situation as if there is no possible way to escape it. You won’t even have a favorable opinion of your self-image and self-worth.
Remaining in a frequent state of depression may cause you to develop unhealthy behaviors, such as drinking, gambling, overeating, and other self-destructive vices. That will bring a whole set of new problems into your life that you don’t want.
3. Insomnia
The toll of stress, anxiety, and depression on your mental health will soon lead to insomnia, the inability to sleep well or at all. People with persistent financial worries often have difficulty getting to sleep. They will either have poor-quality sleep or no ability to fall asleep whatsoever.
Not getting a good night’s rest can lower your energy levels and damage your physical and mental health. If this insomnia continues for too long, you could face some more serious health consequences.
4. Inability to Maintain Relationships
Debt can put you in such a state of misery that you won’t be able to maintain your relationships with friends, family, children, spouses, or romantic partners.
If you already share debt with a spouse or partner, the mental burden of the debt is bound to come between the two of you. You’ll both constantly argue about debts and how you will pay them off. It may even get to the point when you break up with your spouse or partner over the debt.
How to Overcome the Impact
The good news is that you can learn to overcome the impact of debt on your mental health and regain control of your life again. Here are five strategies to help you get started:
1. Create a List of All Your Debts
Do you have multiple debts from various creditors? Having to juggle all these different debts can take its toll on your mental sanity. You must list all your debts and their interest rates, due dates, and monthly payments.
A complete list of your debts can at least help you organize your debt information in a visual outline for you to review quickly. Then, you won’t end up stressing over remembering all the different creditors you owe money to.
2. Seek a Debt Consolidation Loan
The quantity of debts stresses many people, but it doesn’t have to stress you out anymore. Consider seeking a debt consolidation loan to pay off your debt obligations from various creditors. That way, you will have one loan and monthly payment to worry about rather than several.
Even though the total debt amount is the same, it will still be easier on your mental health if you only need to deal with one creditor.
3. Avoid Taking on More Debt
Do not take on more debt if your current debt has seriously impacted your mental health. You’ll fuel the fire if you apply for another loan or credit card when your current debt is still outstanding. A consolidation loan is the only appropriate loan because it will pay off the other debt.
4. Take Care of Yourself
The most important thing to do is take care of yourself. Don’t let the stresses and anxieties of debt hold you back from doing things to improve your physical and mental health, such as physical exercise, talking with friends, embracing your hobbies, and eating nutritious foods.
You’ll find that when you care for yourself better, you can better manage the stresses you feel from your debts. It’s the people who don’t take care of themselves who incur the worst mental health impact from their debts.
5. Speak with a Financial Counselor
Dealing with debt issues by yourself can feel unbearable. It helps to confide in a financial expert who can guide you and set you on the right path toward a debt-free life.
A financial counselor understands the best methods for someone to manage their debt regardless of their current income and economic situation. They can help develop personalized strategies for conquering your debt so that it no longer impacts your mental health.
Conclusion
Millions of people struggle with debt and its impact on their mental health. Some people are better at managing it than others. If you feel like you need to manage your debt better to improve your mental well-being, the first step is to admit you have a problem. The next step is to take action to fix it.
You won’t eliminate your debts overnight. However, suppose you can develop a long-term strategy to deal with your debts using the above suggestions. In that case, you will be on your way to financial independence and better mental health sooner than you think.
