Debts can make you anxious. This is a significant finding revealed in the Gallup study “The Consequences of Debt in America” published in 2016.
Carrying debts causes your worries to ripple. You become constantly preoccupied by how you can free yourself from credit obligations.
Let’s probe further on how debt affects you mentally.
How debt affects you mentally
Debt-induced anxiety can affect anyone. For example, you have student loans you need to pay off. Even the average household carries debt. The common mental disorders associated with paying off mortgages and loans are the following:
- Depression – You feel hopeless about your situation
- Anxiety – You’re always worrying about money
- Stress – You’re more focused on whether you’ll be able to get out of debt; as a result, you become tense when you have to spend money even on the necessities.
If you’re overwhelmed by paying off your debt, here are a few tips to help you cope with the psychological aspects of it.
The thought of getting out of debt is exciting. However, you should be aware that it can be a lengthy process. If you’re not focused on the end goal, then it’s more likely that you would stay in debt. Here’s how you can motivate yourself as you go through the process of paying off debts:
- Start a journal of your debt relief progress – Writing about what you’re doing to resolve your debt issues keeps you engaged. You get to relive each development you’re making.
- Celebrate small victories – According to the Journal of Marketing Research, you feel more motivated to pay off your massive debts if you tackle your smaller bills first.
- Get educated – Knowing more about money and how to get out of debt keeps you focused on the big picture, providing relief from your financial liabilities.
- Fortunately, you have a lot of resources to choose from like financial blogs, podcasts, YouTube videos, and of course, books.
Remember, your debt didn’t happen overnight. In the same manner, relief from debt also takes time. By staying focused, you’re able to move closer day by day to achieve your goal.
Admittedly, debt can make one feel powerless. Now, what’s the only thing you can think of doing to regain your power? Chances are your first instinct is to spend. According to Psychology Today, people in debt want to spend because they want to feel better about their situation. However, your lack of self-control can derail your efforts to get out of debt. This leads you to more debts than you already have.
Your ability to take control of your spending habits will go a long way in helping you manage your monthly payments. Hence, it’s in your best interest to avoid unnecessary purchases if you can. Here are a couple of ways to do it:
- Stick to a budget – Your budget should focus on your monthly obligations. It’s a necessity if you’re serious about getting out of debt. Although it will take time to get used to the idea of having a budget, eventually, it will become second nature to you.
- Keep track of your spending – Your expenses should be aligned with your budget.
Being in debt is stressful. Getting out of debt can be even more nerve-racking. In fact, it can give rise to some mental disorders if you’re not careful. Your ability to stay focused and maintain self-control can help you cope with the stress. Soon enough, you’ll have a better chance of freeing yourself from debt and living the happy and free life you deserve.