Relationship between Debt and Mental Health

Relationship between Debt and Mental Health

In the last several decades, it’s getting easier for people to take loan for their personal and professional needs. The growth of the credit market and the rising lenders in the market made lending an industry in the financial sector. Moreover, for many households, the sum of their annual income is lesser than their total debt.

Debt seems to have a particular psychological effect on an individual’s mental health that often goes disregarded. Additionally, debt is becoming inevitable in current age and it is considered an integral part of the financial reality of so many people. With current trends of lending industry, it is important that we look at the impact of indebtedness on mental health and overall health.

Lack of sleep, depression, anxiety, low self-esteem, paranoia and hopelessness are commonly backed by the poor financial health of individual.

Tips for Managing Your Finances to Improve Your Mental Health

If you are concerned about your mental health that is heavily impacted by the poor condition of your finances, here are some tips that will help you take control of your financial health which in turn will improve your mental health too.

Get organized. Always keep track of your credit report and score, having a track of who you owe and making a spending plan or budget of your income and expenses will give you better idea of your financial situation. If you really want to improve or fix your credit and maintain good credit standing, you have to have a spending plan or a budget. Without one, you will end up spending more than you earn and may face the troubles afterwards. Laying out everything you have on the table can be overwhelming, but it will also help put things into perspective.

Ask for Help. If you are struggling with mental or financial health, it is important to know that asking for help is not a sign of weakness. You can easily find yourself or someone you know in a situation that requires the help of professional. Some people feel uncomfortable talking to a professional, although, it seems intimidating but it doesn’t have to be. One shouldn’t be ashamed when it comes to asking for help related to their finances, just like there is nothing to be ashamed of when asking for help with your mental health.

There are many great professional like credit counselors, financial planners, and Licensed Insolvency Trustees who work with people in similar situations every day. They will help you from budgeting to financial counseling and planning, that can really help you have a better idea of your financial situation, and suggest you steps you need to take to get back in control of your finances.

If you are struggling with your mental health or with a mental illness, it’s also okay to bring along a trusted partner, who can be there for support including your family member or friend. Grasping the solutions you are looking at, for your finances can be really tough. There’s a lot of information to process, so having an extra pair of ears to help you break down that information can be extremely helpful.