In many ways, debt can be seen as a way to create mental health problems. Debt can lead to depression and anxiety as people who are in debt feel overwhelmed by the pressure to repay what they owe. In some cases, people are having to carry the burden of others whether this is funeral expenses, medical debt, or beyond. This leads them to disregard their own needs such as food, shelter, or healthcare.
But it can go so much deeper than that too. It’s hard to have strong well-being if there is debt looming over you, or if you’re needing to learn more about IVAs. It can all feel difficult. While yes, having debt is not the end of the world, it can sure feel that way. So, where are some ways that debt can affect one’s wellbeing?
1. Stress/Anxiety
Stress and anxiety are the two most common ways that stress can affect one’s mental wellbeing. It’s hard to stay calm when debt collectors are harassing you, you’re needing to find ways to come up with the money, or beyond that. It’s not grand, it’s honestly far from grand. Having stress and anxiety can transform into physical issues as well such as sleep loss, having to change dietary options, and more.
2. Depression
When there is stress, usually, depression is going to soon follow. Depression and debt are a toxic combination. A person with depression who is also in debt may be less likely to seek help because they feel like they don’t deserve it or simply can’t afford it. They may also be less likely to get out of the cycle of debt because of their mental health.
3. Not Enough Money for Necessities
In the past, people who had a hard time affording their necessities would turn to their families for help. But in the modern world, with so many families living paycheck to paycheck, it is difficult for them to provide financial assistance. Being in debt means that most of your money will need to go to paying that off. That may also mean that you might have to skip meals, skip cooling/heating in your warm, bathing less, or even beyond that. Your whole lifestyle changes, and it’s usually for the worse.
4. Struggles with Work
If you’re in debt, most likely, you’re working to pay off debt and to stay alive. However, when it comes to being in debt, you may find yourself struggling to pay expenses to go to work. Transportation going to and from work can be very expensive unless you work from home. On top of that, the stress from debt may make your work performance decline. Struggle to get to work, and struggling to perform well could get a person fired.
5. Lack of Income from Retirement Plans/Pensions
Essentially, if there is debt, it means there is no retirement or it’s viciously pushed far out of the way. This means that there may not be anything to look forward to in the future and that alone is quite bleak.