How to Find Relief from Debt and Financial Stress

From student loans to mortgages and other kinds of personal loans, debts and financial issues can cause a lot of undue stress, which can lead to undesirable effects such as deteriorating health and marital problems.

Luckily, there’s a lot you can do today to get quick relief from your mounting debt and financial worries.

Debt and Stress Stats & Facts

what is debt management

In a study conducted by the University of Nottingham, it was revealed that people who struggle to pay off debts and loans are more than two times likely to experience mental health problems, including depression and moderate-severe anxiety.

The emotional effects and negative feelings associated with debts include impaired cognitive thinking and low self-esteem as well.

In a 2018 study, 74% of people were so stressed by debt that they were unable to cope with the adverse effects.

Debt is the main cause of stress for Millenials

Debt is one of the key causes of stress for UK adults. Almost one in four people (22 per cent) admit that within the last year they have felt stress due to being in debt.

The two websites show in more information about debt stress

While research has also found that for Millennials, worries about money are the key reason for feeling stressed.

It is very easy to slip into debt, and it can be even easier to remain in debt once you’ve started sliding down that murky financial path, but there are steps that can be taken to reduce stress, and to make financial difficulties a thing of the past.

So, with that in mind, what should all Millennials be doing to enhance their financial situation?

1. Cut Out The Unnecessary Spend

A shocking 62% of Millennials say that they are not able to save money and that they are living ‘paycheck to paycheck’. However, a different piece of research has discovered that a Millennial’s food spend tends to be far higher than other generations’ because they have more takeaways than average, which highlights that these monetary issues might be due to poor decision-making. By making simple changes – reducing takeaway purchases, for example – and then putting that money into a savings or investment account instead, it will be very easy to set aside money for a rainy day.

2. Make Use Of Apps

There is any number of financial apps that can help Millennials to make smarter financial decisions. Moneybox, for example, invests loose change without you having to do anything, which can make a huge difference in a relatively short period. Banking apps are also very worth having as they can tell you the state of your finances at a glance, allowing you to make decisions easily based on whether you can actually afford to buy something.

3. Know Your Worth At Work

If you are struggling financially then maybe the key problem isn’t your spending habits; perhaps you just aren’t being paid enough. If you can justify it, ask for a raise; if you aren’t going to get a raise, maybe it’s time to look for another job. You have to make decisions that are best for you and your circumstances, and sometimes that means making tough calls.

4. Consolidate Your Debts

Debt consolidation loans can massively help people pay off debts, especially if the deadlines for making various payments occur at different times of the month. By amalgamating your debts you can have a far better understanding of what you need to pay when payments are due, and how much you left in total.

 

What causes Financial Stress?debt and financial stress: stress woman

Large amounts of outstanding debts and loans, medical bills, tuition bills, and generally being irresponsible or careless with your spending can lead to unnecessary financial stress.

Even if you’re a financially responsible individual, an unexpected expense is all it could take to send you spiralling downward into a financially distressful situation.

However, at other times, a lack of awareness around how to save money or plan a budget can also cause financial stress.

Signs/Indicators of Financial Stress

Some signs that indicate you may be suffering from financial stress include:

  • Arguing with friends and family about money matters
  • Too much anxiety, making it difficult to sleep
  • Feelings of anger, fear and resentment
  • Sudden, unexplained mood swings
  • Tiredness, soreness and muscular pain
  • Social withdrawal
  • Loss in libido
  • Loss of appetite
  • Overspending
  • Living on a payday-to-payday basis

Credit Card Debt Stress

Carrying a credit card comes with a lot more than just having the ability to buy things without paying cash. When you own money on one of your credit cards, it can be very stressful. In one poll, it was discovered that 60% either felt some level of stress or a severe amount of stress when thinking about how they would pay off their credit card debt.

Credit card debt consolidation can help lift off a lot of that stress from your shoulders.

Student Debt Stress

It has been reported that student loan debt causes more stress than any other kind of debt. In one study, 45% of adults reported that they felt extremely stressed out when thinking about paying off undergraduate loans, compared with 30% who felt a fair amount of concern about credit cards.

If you’re a student struggling to pay off debt, then consolidating your debts so that they are payable to just one lender can help you save money and pay them off a lot faster.

Debt and Mental Health

A decade-old study reported that half of UK adults who are entrenched in debt suffer from mental health problems, whichranged from a constant feeling of anxiety to mood swings to mental health disorder diagnosis.

A lot of the mental health problems due to debt often comes as a result of inadequate support from friends, family, employers and lenders.

Debt Stress causing Health Problems

healthy lifestyle

Debt can be undeniably one of the most stressful aspects of living in the modern world. In many cases, you find yourself in a financially stressful situation due to sheer bad luck. In other cases, it’s the result of a poor financial decision.

Debt stress can cause serious health problems and one of the first after-effects is having a negative outlook of the world. Many have also reported feeling ‘trapped’ and often questioning the point of life. Others have said it has caused hours of lost sleep, which in turn, made them experience bouts of depression and anxiety.

Depression due to Financial Stress

Living under a constant dark and gloomy cloud of money problems will inevitably leave anyone feel defeated, hopelessand struggling to make good financial decisions. According to the UK’s university of Nottingham, people struggling with debt are twice as likely to suffer from depression.

How to not let debt stress you out

Don’t dwell on the past – What’s done is done, no use crying over spilt milk. What you should do is consolidate your debts so that you can pay off those loans faster, with lower interest rates, thus, improving your future credit score in the process.

Make a budget and stick to it, no matter how hard it will be, the key to sticking to your budget will be the key to sorting out your debts.

Keep moving – One of the best ways to beat any kind of stress is to stay active. Do the things you love doing; whether that’s going for a swim, an early morning run or just lifting weights, for example.

Effects of Financial Stress on Marriage

Financial stress can put a serious strain on your marriage. The effects of this stress include (without limitation) depression, severe anxiety, alcoholism, resorting to drugs, eating and sleeping disorders, etc. all of these things can severely affect your marriage.

But you can do something about it today. Debt consolidation for married people is one of the best ways to minimise this stress and keep your marriage off the rocks!

How do you deal with Financial Stress in a Marriage?

Since your spouse is someone you share everything with, including many of life’s ups and downs, you’ll also have to put up with each other and provide the necessary emotional support.

Always be understanding towards each other and sit down to chalk out financial goals so that you can be better equipped to deal with troublesome situations in future.

Sometimes, you just can’t avoid it – you have to take a loan. But consolidating all those loans into one can help you improve you future credit rating and make smaller repayments as well.

Reduce and ease financial stress

Joint debt consolidation loans married couple

  1. Make a budget
  2. Open an emergency fund
  3. Get outside help (now)
  4. Track your progress

How to cope and manage with debt and financial stress

Not enough attention is paid to the mental and emotional toll that debt places upon its victims. Not only is being in debt stressful, but it’s often a status that can take people months or years to get out of. If this sounds familiar, it’s important to take steps to ensure that you can live with the stress of being in debt long term.

  • It always pays to make one financial decision at a time
  • Keep a check on your spending
  • Identify your key financial stressors and then make a plan
  • Avoid the temptation to spend more money (particularly on things you don’t need)

Learn more in our debt management guide.

Deal With The Root Of The Problem

If you’ve yet to see a debt advisor about your money worries, this should be top of your list. A debt advisor can help you to consolidate your debts into something manageable, as well as helping you to budget to pay off your debts over time. Nothing will improve your money stress like knowing you’re slowly reducing your debts each month.

Maintain A Healthy Diet

It’s been proven in studies that diet and alcohol intake can massively affect stress levels. If you’re struggling with money worries and you’re already doing everything you can to pay off your debts, perhaps it’s time to try and cut down on junk food and minimise alcohol consumption. Reducing your intake of alcohol might even save you money, too!

Stay Active

It’s easy to fall into a rut when you’re under great stress, especially if you don’t have a lot of money at the same time. Keeping a daily routine and getting yourself out of the house every day will help you to maintain a positive outlook and stay healthy despite your stress levels.

Get A Good Night’s Sleep

Sleep deprivation is another leading cause of stress, and it can easily compound existing stress if you don’t get a good night’s rest. Making sure you get to bed at a good time and practising good sleep hygiene – such as avoiding caffeine after 6 pm and turning off screens in bed – can improve your sleep and help you to deal with stress in the long term.

Can I claim Compensation for Stress caused by Debt Recovery?

If a debt collector caused undue stress, pressurises you unnecessarily or gets out of line in any way, you don’t have to pay them. Even if you did and the experience caused severe stress and anxiety, you can take legal action and sue them.

Many bill collectors use harassment tactics to coax you to pay. However, if you fail to pay the debt in a timely fashion, remember, that a debt collector can also sue you for non-payment.

Don’t let it come to that – borrow from our expertise to help you pay off those loans fast by consolidating your loans.

We offer Debt Consolidation Loans for homeowners.

Our team is on hand to help with number of questions you may have.

If you are struggling with debt, please visit Money Advice Service for help and advice.

We are a broker, not a lender.

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