The Detrimental Effect of Debt on Mental Health

With coronavirus thrusting thousands of people into debt, let’s remind ourselves of what that debt can do to our mental health.

Getting into debt is a hazard we all face at some point in our lives. Aside from the older adage that you must speculate to accumulate, many of us need to borrow money from financial institutions like banks whenever we take out a loan. We take out loans for everything from shopping to getting a roof over our heads to buying a new automobile. In fact, from the outside. So being able to borrow money from a lender seems like an excellent idea until it’s not.

When you get into debt, and you lose your repayment method, things start to turn nasty. For example, if you go and buy a new car or a new house, and then you lose your high-paying job, you run the risk of not being able to repay. But it is one thing to get into debt, and it is quite another to bury your head in the sand and ignore that debt. It is a problem, yes, but failing to repay it is an even larger one.

Debt is bad for mental Wellness.

It’s true. There is a strong link between being in debt and committing suicide, and the world isn’t talking about it enough. It can become overwhelming when you have nothing already and fall behind on debt repayments. As a result, you may not be able to feed yourself. You might not be able to heat your house or buy new clothes when your old ones are threadbare.

Living paycheque to paycheque is one thing, but what if you’re living paycheque to paycheque and those paycheques stop coming in? Who wants to live to work, and it still never be enough? 

It wasn’t so long ago that the Robo-debt scandal caused over 2000 deaths in Australia. Across the globe, sources say that financial difficulties such as debt make a person as much as three times more likely to commit suicide. The scientific community is quick to back this up with peer-reviewed studies also informs backs quickly but additionally informs us that the relationship isn’t just between debt and suicide. Anxiety and depression are side effects, too.

How to Deal with Debt Depression?

If you or someone you love finds themselves in this predicament, the last thing you should do is ignore the letters or demands. 99% of all debt collectors will accommodate any kind of repayment plan that suits both of you. Showing willingness and paying what you can in regular installments until you are back on your feet again could be all it takes to keep you out of court.

Remember, you can hire a debt recovery lawyer to have debts recovered on your behalf. They will operate professionally and discreetly without putting undue pressure on your borrowers. You can also hire a debt recovery specialist to help defend yourself, should you have to enter negotiations.

Don’t forget your debts, don’t ignore them or try to run away. Instead, deal with them head-on, tell the debtors you’re having mental health issues, and repay what you can when you can. Stick to these golden rules, informs quickly, and you should do just fine.