Whether you have a big loan or a small one, it is going to affect you emotionally and lead to psychological problems. Based on the findings of CreditsCards.com, an average US citizen has a whopping $15,950 in credit card debt and another 39 percent of Americans carry their credit card loans for several months. When it comes to college students, they have $40,000 loans and those pursuing graduation or higher education may have more debts than you can imagine. This is why many students look to refinancing their student loans, by getting advice from websites like https://www.sofi.com/refinance-student-loan/, so they aren’t left with high-interest levels to deal with alongside their hefty loans.
According to a poll by the Federal Reserve Board, at least one out of five borrowers in the country owes more than $50,000 in student loans and another 5.6 percent owe $100,000 or more. Now, all such debts have an emotional impact on your health, affect your mood, behavior, and could make you unwell over the years if you do not pay off your debts on time.
Debts may affect people differently. One individual may suffer from depression and anxiety for a debt of just $2,000 while another person may only worry when his or her debt builds up to $300,000. According to an article published on https://www.cnbc.com, an individual’s depressive feelings and negative behavior have a tendency to increase when their short-term debt increases. For your better understanding, here are three ways debt affects your health on an emotional level:
A debt will give you a hard time when you have a family with kids, in a relationship or partnership. You may resent your partner when you have too many loans to pay off to your creditors. Many borrowers blame their spouse for the debts, accusing the other of not working to support the relationship, not earning enough money, or complaining about the others spending habits. The bitterness and resentment are very common among those drowned in debt, especially those with a single income to make both ends meet.
Putting all responsibility for the money borrowed on the other partner may lead to divorce. Based on the findings of the Royal College of Psychiatrists, huge loans have multiple effects on a family’s emotional health. It is not only the partners who are blamed but also employers for not giving enough salary or not approving an increment on time. You may even feel bitter towards the members of your family, friends, and colleagues when you have a debt to pay off. The dependent family members are the worst sufferers because they feel they are a burden on the person taking a loan. All these factors contribute to your poor psychological health.
Debt is not easy to accept irrespective of your personal journey. The situation worsens when you fail to repay your loans and the things get out of control. The banks and lending agencies bombard you with emails and phone calls. They speak to your rudely and there is also an exchange of abusive words leading you to frustration and depression. The worst time comes when collection agents come to your house to force you to pay your debts immediately and warns you of dire consequences. It not only affects you emotionally but also takes a toll on your social standing and self-esteem. Your neighbors look down upon you.
To get out of such a situation, you can opt for a lender with flexible payment terms and combine all your loans into one single payment. Yes, you can look up lending institutions on the internet with positive debt consolidation reviews from their customers. Consolidated loans help you pay off your old debts faster than traditional loans and that too with a reasonable rate of interest.
It is still fine if you have a student loan for earning a degree. Once you get a well-paid job, you can repay the debt and start living happily. However, when you have hugs debts accumulating due to credit card shopping, vacations, and expensive dinners, you are in a big soup. Repaying such debts is not easy if you do not have enough cash. You can suffer from fits of depression and frustration when you have huge debts accumulating owing to a sudden loss of a job, identity theft, divorce, or major medical expenditure in your family. Based on the findings of Nerd Wallet, 56 million US adults are having a tough time to repay their medical bills. These medical emergencies are one of the reasons for bankruptcy in the country.
3. Humiliation and indignity
Money, wealth, and material possessions are the parameters that judge whether you are a successful individual or not. If you have too many loans to pay and with limited monthly income, you feel humiliated, ashamed, and suffer from complexes that you cannot maintain your family or provide the comforts your spouse expects. Your poor finances are preventing you from eating out, watching movies, going on trips abroad, shopping, and things like that. Such embarrassment leads to emotional conditions like depression, anxiety, stress, anger, and unfortunately to a nervous breakdown.
There are many students in the country plagued with humiliation and indignity, as they are deep down in student loans. They feel ashamed and bouts of depression and mood swings. The American Psychological Association has revealed all such information related to debts and its effect on human health.
When you are in debt, you cannot discuss this taboo topic with others. The borrowers do not want their friends and family to know about their financial distress and poor emotional health. Based on the findings of CreditCard.com, 85 percent of the participants felt uneasy to discuss their credit card loans. That is because we all try to show that we are financially affluent and happy with our lives, debt-free. You still buy expensive gifts for your spouse, friends, and incur expenses to match the spending habits of people around you. There is no end to your debt and the consequences related to it unless you repay your loan. The best solution is paying off your creditors. Keep humiliation, indignity, and nervous breakdown away.
Now that you know about how debts can take a toll on you emotionally and even lead to a nervous breakdown, start paying off your loans immediately.
Marina Thomas is a marketing and communication expert. She also serves as a content developer with many years of experience. She helps clients in long-term wealth plans. She has previously covered an extensive range of topics in her posts, including Money Saving, Budgeting, Cryptocurrency, Business debt consolidation, Business, and Start-ups.