Being in debt can cause serious emotional effects. Having financial problems impacts your mental wellness and sometimes even affects your physical health. Poor mental health can make earning money feel much harder. At the same time, worrying about your finances can worsen your mental health. It can end up feeling like a vicious cycle. When your finances feel out of your control, some people turn to unhealthy solutions for temporary relief. Sorting out your finances can feel overwhelmingly hard. But by taking one step at a time, you can start to deal with the mental challenges that come with being buried in debt.
- Debt, Financial Problems, and Mental Health
- How to Get Out of Debt
- Six Tips for Dealing with Financial Stress and Anxiety
- Financial Wellness and Mental Health Problems
Debt, Financial Problems, and Mental Health
For many Americans, money is the top cause of stress. Regardless of the amount or type of debt you have, people can experience a range of emotional and physical issues from debt, such as:
- Poor sleep
Research shows that people who struggle to pay off their debts are twice as likely to experience a range of mental health issues like depression and anxiety. Financial anxiety can arise from constant worries about money and experiencing overwhelming feelings of hopelessness. Often, it can feel like there is no end in sight.
Being in debt can be very stressful and can lead to serious health issues. There are several reasons why someone might be in debt. Whether you split from a partner or lost your job, changes like this can make it hard to pay your bills, and debt can start mounting up.
Poor mental health can affect your ability to manage your finances effectively. At the same time, financial worry can be detrimental to your mental health. Sometimes, it can feel extremely tough to get out of this cycle, but it’s essential to deal with your financial problems so that you can come up for air.
How to Get Out of Debt
If you feel like you’re buried underneath a pile of debt and struggling to get out, you can improve your financial health with the right tools and knowledge. Sometimes, people feel embarrassed or nervous to talk about their debt, but talking about it is the first step to dealing with it.
Tackling debt is a step-by-step process; it doesn’t happen overnight. It is entirely possible to get out of debt without selling major purchases like a car or your home. The best solution for your situation will depend on a few factors, such as:
- The type of debt you have.
- The amount of debt you owe.
- How much money you can pay toward your total debt.
Six Tips for Dealing with Financial Stress and Anxiety
Dealing with financial stress and anxiety is key to living a happier, healthier, and more fulfilling life. A lot of debt anxiety can come from feeling a lack of support. Being in debt is already a burden, and when you feel isolated, it magnifies the situation. Here are six tips for dealing with financial stress and anxiety.
Understand Your Money Pattern and Mood Changes
An excellent place to start is to try to understand your thought patterns and mood changes around money. Think about what parts of dealing with money make you feel anxious and when and why you spend or save money. Start by keeping a diary on when you spend money and your current mood. This could help you figure out your triggers and feel more in control of your finances and emotions.
Evaluate and Organize Your Finances
When you’re facing a lot of debt, you must take steps to feel more in control. Evaluate your finances and create a realistic budget. If you’re struggling to figure out how to save money, making a budget is essential. From here, you can manage your debts and make a plan. Understanding your finances can help put everything in perspective.
Choose a Repayment Method
Once you fully understand how much you owe and to whom, you need to choose the repayment method that causes you the least anxiety. From a financial standpoint, debt stacking is a useful way to pay off debts as it means that you pay the least amount of interest possible. This involves making minimum payments on your debts and then throwing any money left over toward the debt with the highest interest.
Look After Your Health and Well-Being
Don’t forget to look after your well-being. There is a clear connection between the mind and body. By practicing mindfulness and meditation, you can help to manage stress and feel more in control. Regular exercise and a healthy diet will improve your mood, sleep routine, and decision-making skills.
Share Your Concerns and Worries
Sharing your money worries with a friend or relative can provide some relief. Although it isn’t always easy to talk about your finances, speaking to someone can help you face the reality of the situation. It also puts your problems into perspective and can be useful in making a plan. Knowing that you are not alone is comforting.
Manage Anxiety Around Money
If you have a lot of anxiety around money and debt, there are a few things you can do to feel more in control. To get a hold of your anxiety, you need to feel more in control of your debt. To address debt, you need to solve a problem rather than using emotion-focused coping methods. It’s normal to feel anxious about debt. Tackling bills and making a debt repayment plan will provide you the long-term relief you need.
Financial Wellness and Mental Health Problems
There is a clear link between financial problems and mental health issues. Tackling both problems will improve your mental health and help you get better at handling your money. Finding healthy coping methods like meditation, exercise, and yoga can reduce anxiety and stress. At the same time, begin to address your financial situation one step at a time. Organize your finances, understand your debt, and create a budget. Seek financial and mental help and support so that you can address the issues headfirst.