There is a strong correlation between debt and mental health which is often overlooked. According to the Royal College of Psychiatrists, 1 out of 2 adults with debts, also struggle from mental health and therefore it is something that certainly should be discussed more openly.
Not only can people with mental health such as anxiety or depression face difficulty with managing finances, but parallely, those with debt can often suffer anxiety or depression as a consequence.
Debt can start with basic credit cards or types of personal loans and get out of control due to shopping online, gambling or by being unable to keep up by losing your job or form of income.
With 1 out of 10 Britons suffering with debt problems, circa 6 million people, it is something that we need to be more conscious about and today we offer some useful guidance and support to be debt free and have good mental health for 2022.
Speak To Your Creditors
The stress of having debt starts with the letters demanding payments and it is remarkable how such a small piece of paper can cause so much stress and anxiety. Also just the feeling of having debt in itself is a painful and uncomfortable feeling.
But one of the worst things you can do is avoid any communication with the creditor. In fact, just speaking to the creditor or company that you owe money to, can ease things. There are always options available to you if you are struggling to pay back a credit card or you are behind on a loan.
For instance, credit card companies can offer you a minimum payment, which is 10% of the balance and you can recur this each month until you want to pay in full. The fees for doing so are very, very small and there is just a tiny negative impact to your credit score – but it offers huge breathing space.
For lenders, they are likely going to be able to freeze interest, delay payment for several weeks and months or spread your repayments over a longer period of time, via something called an arrangement to pay. So whilst you will still owe the repayment, it will certainly help by being able to delay repayment until you can get back on your feet.
And just having some repayment schedule in place can stop any calls, texts or letters coming through the door and take some stress off your shoulders.
Speak To a Professional
If you are struggling with debt and are unsure where to turn, consider speaking to a debt professional. Not only are there lots of forums online, but there are charities who will answer you and help you for free, such as StepChange and Citizens Advice Bureau. These establishments will be very used to the types of debts and problems that you are having and they will know very quickly the best ways to calm things down and help limit any further fees and charges being applied.
Speak to Your Family and Friends
Whilst many people are too embarrassed to speak to their close circle of friends and family about their debt or their mental health, you will find enormous strength and support from the loved ones around you.
If you have some debts to pay off, you may find that borrowing money from family and friends can be a simple way to elevate this. It is common for parents to help with any debt problems and not request any interest back. You should always be planning on paying your family back though, because this is always healthy for a relationship. But certainly if you have lost your job and just need some breathing space, this can always be a viable option for you.
Don’t Be Shy to Ask For Help
Being strong in times of mental health or financial problems can sometimes add even greater stress, by just having to hold everything in or still be required to attend birthdays, pay for gifts or go to restaurants with people you love.
But being open and honest with the loved ones around you, can be one step closer to helping with your current problems and getting back on your feet.
Just Realise That Everything is Temporary
You might feel like your debt is taking over, but in reality, it may only be temporary. After all, debt is something that can be wiped out once you have repaid or part repaid.
You may want to avoid selling important things in your life, such as your house and your car, but do not be surprised how much junk is lying around the house that people are willing to pay money for. Whether it is books, CDs, DVDs or clothes, there are people on various apps, Facebook Marketplace or even car boot sales who are interested in buying these things and you could quickly gather a few hundred pounds in very little time.
You will be surprised how quickly you can get your debt sorted – and one step closer to financial freedom and better mental health.
This article was written by a freelance writer and contains links.