How Debt affects mental health?

We are living in the era of Brands, social media influencer, attention and fame. Most of the people are willing to look best, be the best and get all the world desires with putting any extra efforts. In today’s life, luxuries of life and desire are playing a role of needs. For people it becomes very hard to distinguish between their needs and wants and opt for one. It’s seems ironical but poor are running for food and rich is running after eating food. In the race of World desires when people lose and desire wins, they often get into the debt. They say in general, so what if I bought anything I will pay it later or by my credit card but they did not realise that they are creating unnecessary pressure on themselves to meet their needs and peace of mind.

Relationship between Debt and mental health

Debt and mental health is interrelated to each other. People who have debt has higher chances to experience mental health concerns and people, which mental health concern also has chances to get into debt. Due to medical expenses and difficulty in perceiving their reality. According to money and mental health policy institute survey, 46 % people who are faced with debt issue are also suffering from mental illness and nearly 3 and half percent people are suffering with mental health and due to that facing debt issue.

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A Fobes advisor survey in late 2023 indicates that 60% people agreed that due to the debt they are facing relationship issues in family and 54% of adults agreed that they are feeling Stressed because of debt. This percentage indicates that half of the population if suffering from either one or both issues.

Mental health concerns which can arise due to debt

Due to debt sometimes people get into substance Abuse, Anger issues and domestic violence which leads to difficult family environment and relationship issues. When amount of debt is so high that person feels they can’t repay it they often choose to die because they are unable to arrange the amount which is required. Sometime some innocent people take debt from local people on high interest and finds it difficult to repay it as their interests amount is increase after every few months.

Some mental health concerns are listed below:

1) Substance abuse:

Some people use a substance to forget their hard reality and challenges of life as their mind is almost always preoccupied by Money, interest, pressure of giving the amount of time or what people think about people. Substance Abuse is a kind of escape for them. This can lead the family into bigger problems and relationship issues. When people get addicted to that, they feel they can’t survive without it and increase their life challenges by pursuing a habit of substance Abuse.

2) Debt Anger Syndrome:

Debt Anger Syndrome is about person who get mad on their spouse for not making more money, for kids to not bare their own expense, creditor who sent bills every month and their own self for unable to fix their problem. This can affect person physical health as well. They can become more prone for heart diseases, Migraine and low tolerance for infections.

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3) Stress:

people can become stressed as they can’t pay the bills and find it hard to be at peace as everywhere what they can see is money problem. They believe that all their problems will get solved because of money and they are unable to get it. They are often in search of help of money. This stress can affect their mental and physical health.

4) Anxiety:

people which debt feel extreme anxiety about how to pay the amount, what will happen when they will not do it. What they can do to fix it these anxiety proving thoughts sometimes becomes so challenging that person finds it hard to breath or sleep. The moment they get alone their anxiety proving thoughts starts getting into their mind.

5) Denial:

Sometimes people spend money even when they know they are getting into financial crises. Because they are in Denial mode and they feel they can fit it until they did not get calls from debt collectors, banks to close down their credit card, spoil their civil score or gets piles of interest charges or late fees.

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6) Depression:

When people become hopelessness from all the sides or their life and after doing all their possible effort to repay the debt they slip into depression as they become hopeless about their situation. In this situation they prefer to stay alone and avoid going out as fear of meeting their creditor occupies their mind. They feels apathy and does not enjoy anything in their life.

Actions to be taken to prevent Debt

1) Buy and immediately pay the bill:

In the era of credit card and online payment focus on immediate paying the bill instead of clicking on the Cash on Delivery (COD) or EMI options. When people pay immediately they get a quick picture of their financial status at present whereas when they choice to pay later, they realise that total amount affecting their monthly budget and let them fall into the trap of debt.

2) Use of credit card for needs:

When you are using credit card make use you are using it for buying stuffs which are your needs not for luxuries which you can’t afford with your salary. It’s really easy to use it but very hard to pay all the instalments of it as other than paying the bills people have to pay for their other regular expenses. When they face any challenge in life in which they have to spend money (any health problems, accidents or helping other members of the family) they get into debt as they don’t have any amount to manage the present challenges of their life.

3) Emergency saving:

Keep at least 6 month salary or monthly income from business to bare your sudden problem. This problem can be loss of job, lose in business and sudden long live with can affect your salary and business or any health problems. This emergency saving will help you as the backup plan whenever you are dealing with life. Saving money will allow you to live with security.

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4) Don’t spend too much on your wants:

Wants are unlimited and if you will run after it you are going to fall miserably. Don’t go for shopping of unnecessary stuff only because you are getting it in less price. Online shopping often shows sale till this time but even you are buying in sale, but what you need not want you don’t need. Keep things safely and do maximum use of the product and buy only when you feel it’s not worth using. Changing phone just become mobile model gets old it’s now a wise decisions when you are already suffering with paying the monthly bills and EMI.

5) Understand the situation:

You must have seen that most of the time credit card is offered in Shopper malls it only because it’s the time when your desires are high and you are bit far from your reality. In the rush of desire people buy it and later on they regret of using it. Don’t buy anything when you are very high on emotional.

6) For playing loan or EMI instalments:

Always do all the payments before the last dates. Due to network issues or other unavoidable reasons, money, sometimes fails to process, so it’s advisable to be an early bird if you want to live freely without any debt.

7) Keep track of your monthly budget:

In a month first calculate your total expenses and spend your money according. In calculation mention the same amount for saving as well. Track of monthly budget will restrict you from doing unnecessary shopping or misuse of money.

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8) Collect Coupons to save cash:

on online shopping people get so many cash backs offers and coupons to buy stuffs. Use it wisely and save your money. It is a good way to get some amount without putting any extras efforts.

9) Keep limited no. Of credit cards:

Now a days people carry many cards, they represent it as their status but in reality it shows that how much unnecessary shopping or misuse of money they are doing. If people carry many cards to invest in business or for getting money then also it is advisable to use it only as much you manage it. Taking very high risk on money can very problematic when sudden life challenges arises

10) Being proactive in managing your money:

If you have to pay any EMI or instalments then it’s better to save it the moment you get your salary to avoid any problem in the end of the month. Don’t depend on your next monthly salary to forgiving your month EMI. The person will be able to live peacefully without being scared of how they will manage it at the end by proactively managing money.