Money has the potential to cause immense stress and anxiety. If you’re in debt, you may feel like you’re constantly worrying about money and how to pay off your debts. But what does debt do to your brain? What is the psychological impact of debt on your mental health? Here, we take a look at the emotional and psychological effects that being in debt can have on your mind.
The Fear Of Debt And Financial Anxiety
Debt can be a source of fear and financial anxiety, especially if it feels like there is no end in sight. The longer you stay in debt, the more likely it is that feelings of anxiety will start to creep into your life. A study published by Harvard Medical School found that people struggling with debt have higher levels of cortisol—the hormone released during physical or emotional stress—than those without any financial worries. This means that being in debt can leave you feeling overwhelmed, anxious, and fearful about the future.
The Psychological Effects Of Debt Shame
Debt shame can be incredibly damaging to our minds and mental health. A Mind over Matter survey showed that 77 percent of people felt ashamed about their financial situation. This kind of shame can lead to depression, guilt, low self-esteem, and an inability to focus on work or other areas in life due to constant worrying about money. Shame can also make it harder for people to reach out for help or find the solutions they need to get out of debt.
How To Cope With Debt Stress And Anxiety
It’s important to remember that strategies are available for managing debt stress and anxiety—even if you don’t think they will work immediately. For example, budgeting apps such as Mint or YNAB (You Need a Budget) can help you track where your money goes each month to know exactly how much disposable income you have left after paying bills and expenses. Additionally, talking openly with family members or friends who understand your situation can help reduce feelings of isolation and loneliness associated with financial distress.
Wrapping Up
It’s normal for anyone dealing with debt to feel overwhelmed by their finances. However, understanding how money psychology works can help us cope better with our financial worries – whether dealing with large amounts of credit card debts or simply trying to make ends meet monthly. By using budgeting resources like Mint or YNAB, as well as speaking openly with trusted confidants about our concerns, we can learn effective ways to reduce our stress levels associated with debt while still progressing towards getting out from under its weight once and for all.