The stress and concerns about escalating debt are overwhelming. Debt stress can affect important health behaviors such as diet and sleep. If you experience loss of sleep, fluctuations in your appetite, or changes in mood, you are not alone.
However, there are ways to combat the stress of debt and get your health and finances back on track. But before we get into the way of beating your money stressors, we cover statistics about how common debt stress is.
Debt Stress Statistics
Debt in America is very common. In the American Psychological Association report, “Stress in America 2020: A National Mental Health Crisis,” 64% of adults said money is the major source of stress in life.
Household debt increased by $117 billion, auto loan debt increased by $8 billion, and student loan balances rose to $29 billion in the first quarter of 2021, according to Centre Micro Economic Data.
Americans currently have $770 billion in credit card debt, compared to more than 20 years ago, before $478 billion.
Whether your debt is due to unemployment, medical debt, unexpected expenses, overexpenditures, or a combination of factors, worrying about debt is the main cause of stress and you are not alone.
The good news is that you can overcome debt stress with your plan, regardless of your current situation.
Are you struggling with the stress of debt?
You may be experiencing a lot of stress, but some of your stress can be attributed to your finances and debts. Feeling debt stress can actually cause health illnesses and negative emotions.
The threat to financial security is the highest among racial and ethnic minorities, especially for communities of color. A recent male health article even states that “financial stress puts people on the list of things that are rewarding for heart disease.”
That being said, below is a list of symptoms that will help you determine if the stress about your debt is affecting you.
Physical changes and unhealthy coping behaviors
Sleep disorders, reduced appetite, migraines, sudden weight gain, social withdrawal, or increased levels of anxiety can all be caused by debt stress.
Another symptom of debt stress is developing unhealthy coping behaviors such as alcohol misuse, gambling, and overeating. The researchers have found a relationship between an individual’s unsecured debt and mental and physical health.
Overexpense
Overexpenses are also a common indication that you may be highlighted about your debt. Financial insecurity can amplify the very actions that have led you to your difficult financial situation.
Feel the waves of emotions
If you are suffering from a wave of emotions, it can be related to your financial problems. Some common emotions related to debt stress include:
Shock and denial
Learning to understand your emotions can help you identify the stress of your debt. It’s not uncommon to pretend that debt doesn’t exist.
Denying the amount of debt you have will give you extra time to absorb and process it. However, it is important to remember that unlike most types of rejection, denial of debt costs money.
anger
It’s normal to feel angry. Perhaps you’re angry at the company that left you, or you’re angry that the US healthcare system is the most expensive healthcare system in the world. But anger can hide some of the res and bitterness you may feel about the very situation you are in.
The stress of debt can lead to irritability, and your anger can be redirected to other people. Anger can also be a symptom of sadness and fear.
Guilt and shame
Guilt and shame can lead to avoid seeking help and having a money conversation. In many cases, people who feel guilty or shame may become more and more secretive and avoid social interactions. If you feel that you have withdrawn when the money target occurs, you may be experiencing guilt or shame.
Debt stress-related depression
This feeling can and can be heard like, “I’m always in debt. I’ll never pay my debt.” Depression often makes us feel alone on this journey, and the stress of debt lasts forever.
A sense of despair
It is said that a sense of despair is like you are “running in the sky.” When you feel the overwhelming amount of debt, your senses will creep up.
It may feel like it will take centuries to get out of debt. The key here is to remind you that planning allows for debt freedom.
8 tips for managing debt stress
Have you identified some of the symptoms mentioned above? If so, don’t feel helpless. There are many ways to manage debt stress. Below are some steps to relieve stress and regain control of your finances.
1. Shift the focus
Shifting your focus from everything you can to what you can start with willing to what you can start on a journey to reducing the stress of your debt. Exploring healthy money thinking and focusing on what you have control over will help you feel more in control.
Be realistic with things you can’t achieve right away. Take a small step and find a balance to take care of your important expenses while tackling debts from past decisions.
2. Get control
Conversations about money can be difficult. But it’s important to tell someone about the stress of your debt. Find someone you love, trustworthy friends and family. They may not be able to offer advice, but in many cases, just putting everything on the table will make you feel like you’re not putting any strain on it.
In order to gain control, you also need to accept responsibility and identify the money habits and behaviors that lead to debt.
Don’t be afraid to seek help from a financial coach, get an accountability partner, work with a debt counselor, or hire a certified financial planner. Getting professional advice can help you in how to communicate with your creditors, how to create and implement your budget.
3. Understand your current financial situation
It’s time to become a reality and face the reality of your financial situation. Know your real numbers, including your total income, monthly expenses, debt balance, and more. Be familiar with minimum monthly payments, interest rates, fines and fees.
Take your time to reflect on what triggers are for your debt stress and the major causes of your debt. As you work on understanding your debt, you slowly start to get lost and feel in control.
4. Reduce debt stress with a proper budget
It’s easy to get frustrated following normative budgeting advice. Personal finance is personal. You need to think about things that have not worked for you in the past. Things that may work for your best friend may feel boring to you. But don’t be discouraged.
A budget is simply to create a plan for your income. By creating an expenditure plan, you can work on every dollar you earn. You can’t get rid of your debt in just one day.
Creating a plan that works for you is an important step. Understand how much you can spend on your monthly expenses.
5. Reduce costs
If you create a list of all monthly expenses, you will see that there may be recurring costs like subscriptions. Check where your income is last month or two.
Skipping this part is appealing, but it is important to review your bank’s statements to understand your spending habits. You can identify areas within your expenditure.
Prioritize items within your budget, such as housing and utility costs, while reducing areas such as entertainment and dining. Be honest with yourself about where your money is heading.
6. Increase your income
Tracking your finances and taking stock of where you stand will help you identify some areas you may need to improve. When considering your income, don’t forget to include bonuses, tax refunds, child support, alimony, and more.
As you cut costs, you may find that one problem is that you have more months than your salary. If your income is barely enough to cover your monthly bill, consider ways to increase your income while reducing your expenses.
7. Prioritize debt and invoices to pay first
Create a list of all your liabilities and include minimum payments, late fees and interest rates. Be familiar with the different ways to tackle debt and understand the different debt repayment strategies. This is the main thing for paying off debt and will help you stop worrying.
8. Determine a debt reward plan for you
Being familiar with strategies like debt snowman and debt avalanches, remember that the best strategy is a strategy you can stick to.
Don’t be afraid to seek the assistance of a financial professional, especially if you have an account for debt collection. They can provide guidance on debt collectors, debt and loan consolidation options, and addressing loan refinancing practices.
Simply having an accountability partner has the power. Finding someone who can hold you accountable for the plans you have created is a useful tool as you feel the need to fulfill your promises. Asking help will help define your financial priorities.
There are other action plans, such as balance transfers, but keep things as easy as possible to combat the stress of debt.
You may be relieved of the stress of debt
Therefore, creating a debt repayment plan will provide you with a proactive approach to combating debt stress. Learning to find hope and deal with it in the midst of your financial stress will help you feel more controllable. Tackling your financial worries is important for both your mental and physical health.
When you navigate your debt, don’t forget to talk to a professional trusted friend or relative. Discussing money issues can be difficult. But the emotional support they provide you may be the hope you need to get started.
The debt cycle may feel like it will last forever, but making changes and taking several steps can help reduce the stress levels associated with your debt. Help the stress of debt by taking a completely free financial course and getting back on track!