People may find themselves in debt because of several different factors.
If your mental health suffers, this may affect your finances and the way you manage them. Debt is also likely to trigger conditions such as anxiety and depression.
In what ways and how do people get into debt?
There’s a huge misconception, where people believe that one falls into debt by living an excessive life or moving all over with store cards and credit cards. The truth will actually surprise you: redundancy and unemployment are the major causes of debt problems and no one is immune to this, no matter their attitude towards money. At one point or another individuals may find themselves in debt.
You may have lost your job, or suffering from a mental condition, or having problems with your physical health, or separated from your partner, such changes can leave you struggling to pay your bills as well as debts. Adjusting to such financial change can be tough for any individual, even when it lasts for a short while. A small personal loan – similar to one of these from https://loanza.co.uk/easy-loans-uk– can help solve a financial emergency so long as it is paid back, it can also serve to help your credit score when loans are paid off on time.
In what ways can mental health problems affect your finances?
Although people suffering from mental health problems like depression and bipolar are more likely to face debt problems, there are various reasons why poor mental health can affect the way you manage your finances.
Reduced energy levels can make it hard to track your money, whereas hasty and unwise decisions can make you spend your money on items you can’t afford. In serious cases, being off work can reduce an individual’s income and a hospital admission can make it difficult to follow up on the bills that need to be sorted out.
Mental health conditions and problems like dementia can affect the way people make decisions relating to money.
It’s against the law for people to make decisions on behalf of others about how to use their money unless they’ve got legal authority to do so.
How can debt affect your mental health?
Half of UK adults in debt problems are also battling mental health problems, according to a 2010 study from the Royal College of Psychiatrists. These included consistent anxiety levels and low moods, and diagnosed mental health disorders.
A lot of the debt-related anxiety can result from unsupportive creditors and also the individual’s surroundings, which include family, friends as well as employers. Debt can be a huge burden, and it can be worse while dealing with it alone. Another issue resulting from debt anxiety is the lack of quality sleep.
Failing to have a goodnight’s sleep does not only affect your energy levels and mood, it can also have major negative effects in other areas of your life such as family and career. In return, all these can contribute to an individual’s debt problem.
Questions you need to ask yourself if you feel you have a debt problem
Do I often get anxious when pondering about how to manage my repayments?
Am I straining or do I often miss the minimum payments towards rent, utility bills, or credit cards?
Do I hesitate to pick calls from unknown numbers and ignore messages from creditors?
Am I unable to allocate money for an unexpected reduction in my income for example redundancy, car expenses, and emergency fixes?