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Americans have a combined debt of over $14 trillion. The average person has about $38,000 in personal debt, not counting home mortgages.
People everywhere are drowning in debt. The amount of debt people carry has seen a consistent and steady increase over the past few years.
This kind of debt has steep repercussions on every facet of a person’s life. Let’s take a look at what the emotional impact of unpaid debt can be.
How Do People Get Into Debt?
The fear of debt doesn’t prevent things like credit card problems from happening. Oftentimes, debt isn’t due to bad choices.
Unemployment, mental or physical health problems, or separating from a partner can all cause a person to fall into debt. It starts with struggling to pay bills and buy groceries. As you fall further behind, using a credit card or taking out a loan becomes a last resort that’s turned to.
Adjusting to financial changes is a difficult obstacle to overcome and all too often leads to steep debt.
What Is the Emotional Impact of Debt?
The emotional effects of debt and credit card problems are varied but severe.
Embarrassment or humiliation can be a consequence of poor decision making. Overspending and racking up a huge credit card bill isn’t something people want to advertise. The embarrassment can cause people to try to hide that they’re in trouble, which in turn makes the problem even worse.
Debt can also lead to stress, depression, and anxiety.
The constant worry over money with no end in sight causes many people to feel hopeless. As this stress builds, it can start to impact the quality of your sleep, as well as duration.
As the stress spirals out of control and causes sleep deprivation, the lack of sleep, in turn, starts to create other problems. Lack of sleep can start off by causing bad moods, low energy, and difficulty concentrating. If stress and sleep deprivation are left unchecked for too long, they can cause health conditions like obesity, diabetes, and depression.
Around 26% of adults struggle with depression.
Though it’s a mental disorder, depression has serious impacts on your health. It can cause headaches, body aches, obesity, heart attacks, and suicide. Anxiety often accompanies depression and can worsen to the point that you experience panic attacks.
How Do You Get out of Debt?
Climbing out of debt is an arduous process that requires a plan.
The first step is to document all of your debt. You need to note where it’s coming from, how much is due each month, and how much in total is left for that particular bill.
From there, arrange your debt from highest to lowest. You’ll want to focus on paying off the smaller debt first. If you work toward paying over the minimum monthly balance on the smallest bill, you’ll soon be on your way to reducing your debt.
Sometimes, consolidating your debt may also be the best move. If you decide that this is the path you’d like to take, there are services (like www.debthunch.com/offer) that can help you find a consolidation solution.
The Struggle Is Real
A vast majority of people are coping with debt. If you’re drowning under debt, don’t try to fight alone. The emotional impact of debt is severe, so don’t be afraid to rely on friends and family as a support system.
We hope this article helped you find the initiative to start dealing with your own debt. Before you go, be sure to browse our website for other great reads.