Everyone has an opinion on the divisive saying, ‘Money can’t buy happiness’. On one end of the scale, people agree wholeheartedly with the statement. At the opposite end, others claim money is the key to positive wellbeing.
What can be unanimously agreed upon is that money helps to fight off emotional burdens. If someone is in debt and struggling to pay their monthly bills, it can have a number of detrimental effects on their health.
Sadly, a large portion of the US population finds themselves in significant debt. Statistics highlight that the average American household carries over $8,000 in credit card debt. Then there’s also the fact that current student loans leave borrowers with an average debt of $32,731.
Aside from student loans, debt can happen due to a number of reasons, including:
- Covering daily living expenses
- Medical bills
- Car and home repairs
- Holiday and shopping habits
- Interest charges
How Debt Can Impact Your Mental Health
While it’s established that financial burdens can impact your mental health, it’s important to understand the ways in which it can cause harm.
An Increase In Stress
Understandably, stress levels will rise when saddled with a significant amount of debt. If you have financial worries, you’re going to constantly worry about how to get out of the situation. Additionally, you may feel even more stressed at work as you realize how imperative it is to avoid losing your job.
Depression and Anxiety
When faced with a relentless worry about money, where there’s no end in sight, this is only going to cause a rise in depression and anxiety. Thankfully, PsychCentral has a number of methods for coping with debt depression.
Denial Takes Over
In some cases, people feel suffocated by their debt. Others try and block out the issue completely. When denial creeps in, this will only cause further problems later on. It may supply temporary relief by avoiding the situation you face, but the debt will continue to pile up and become a bigger burden.
Anger and Frustration
It’s hard to accept being in debt. This is particularly the case when it is caused by something beyond your control such as an unexpected medical bill. The levels of anger and frustration will only rise when the debt serves as a frequent reminder of why you’re in a financial struggle in the first place.
The Path to Relief and Freedom
Once you are in debt, it can be hard to find a route to financial security. This is further impacted by the hurdles put up against those struggling. For instance, if you have a poor credit score, you might only have the option of looking at bad credit loans — which typically come with a higher APR than other finance choices. Note: if you are faced with needing to get a bad credit loan, specialist credit broker Cash Lady can help with securing the best agreement possible.
When considering how damaging debt can be on your mental health, it’s vital you take the necessary steps to financial security. Once you do so, you will benefit from a wealth of positive emotional effects. Not only does it deliver relief, but you will also feel a sense of accomplishment and freedom.