The emotional effects of debt can affect your health.
We know that debt can cause a lot of damage in our lives, and not just because of the impact that a bad credit score or an actual lack of money has on the way we live. Debt can literally make you sick. It can affect your physical and mental health in varying degrees. For some people, debt plays complete emotional havoc on their psyches, while studies have shown a direct correlation with physical pain. Unemployment results in more people purchasing over-the-counter painkillers. Even thinking about the prospect of financial insecurity is enough to increase pain.
While you’re dealing with the negative effects of debt – like increased anxiety, low self-esteem and impaired cognitive functioning – you aren’t able to learn, be attentive at home or problem solve at work. That is why it is critical that you learn how to deal with your debt in a healthy way. In fact, the psychological effects of debt have been shown to manifest in a similar pattern to the stages of grief.
Denial: If you don’t have a handle on how much you owe, leave bills unopened, block the phone numbers of collection agencies, or convince yourself that everyone is in a similar situation, then you’re in denial. But denial is just the brain’s defense mechanism and reality will eventually set in, which can lead to…
Stress: In this stage, you suffer from lack of sleep, loss of focus, or constant nagging worry because of debt.
Fear and Anxiety: This is when debt – or dealing with creditors or debt collectors – results in a negative response in your body, like increased heart rate, shortness of breath, a dry mouth or headaches. You may worry that you’ll lose your house and be homeless, or that your car will be repossessed and you won’t be able to get to work, and lose your job. It’s easy for fear and anxiety to spiral out of control unless the cause is managed.
Anger: Debt-Anger Syndrome actually exists in medical circles. Instead of becoming stressed or anxious, some people become very angry at the way debt is ruining their lives. They lash out at the perceived cause – the government for a slow economy, a wife who overspends, a boss who doesn’t pay them what they’re worth, or themselves for landing up in the situation. But anger is really just another symptom of grief.
Depression: After you’ve worked through these different stages, the bills still keep coming and the debt collectors still keep calling. That’s when depression can set in, leading to sleep or eating problems, alcohol or substance abuse, and increased health issues – which can lead to further feelings of hopelessness and low self-esteem.
Acceptance: This is finally when you can see your situation with clarity. This is the stage at which the real debt work can get done. Acceptance does not mean that you won’t still experience feelings of loss or pain, but you will be able to better manage them with the understanding that they are temporary, because you’re now ready to take action and tackle your debt in a healthier way.
It doesn’t matter what stage of ‘debt grief’ you’re at, or even how you got into debt in the first place. What matters is getting out of it, dealing with your debt woes, and protecting your physical and mental health while doing it. Optimate Financial Solutions offers some good ideas on how to become debt-free in 5 simple steps.
It’s important to remember that bad financial stuff happens all the time, which has nothing to do with who you are at the core of your being. And nobody makes good decisions clouded by fear and depression, so try not to see your financial struggles as a reflection of you as an individual. But if you do find yourself stuck in anger, fear or some other negative stage, look for things to be grateful for – and what brings you joy beyond the debt. Medical studies prove that people who do this live longer, have better health, have less stress and get the things done that they need to get done. And you’ve got a lot to get done to tackle your debt, enter a new stage of growth, and live your best life!