Money Problems affect Physical and Mental Health
Struggling with debt can lead to stress; it even has its own name in the medical community: debt stress syndrome. It can lead to other health problems such as depression, anxiety, high blood pressure, and diabetes. The longer it takes you to tackle your debt, the greater the toll it will take on your health. But having a strategy to repay your debt can help reduce stress significantly.
Part of the reason debt can be so stressful is that it may feel like your finances are out of control. A plan for how you intend to pay it down can help you get your finances back on track. Debt can affect your finances in so many ways; letting it get out of control can cause a domino effect.
For example, if you're burdened with thousands of dollars in credit card debt and the interest payments are climbing, you might skip a couple of payments so you can pay all your other bills. But those missed payments ding your credit score and cause the credit card company to increase your interest rate (and likely also charge a hefty late fee). Then, an unexpected expense pops up and you can't afford to pay for it. You try to take out a loan, but the lender charges you a high interest rate because you have a less-than-ideal credit score. The cycle continues, and you can't help but dig yourself deeper and deeper into debt.
To avoid all this, do whatever you can to pay off toxic forms of debt. That could mean cutting your budget down to the bare bones for a few months, or picking up a side job and putting all that money toward your debt. The faster you get out of debt, the more it improves your overall financial health.
Nearly everyone deals with debt at some point, but if it gets out of control, it can potentially ruin your finances. Regain control with a strategy for tackling your debt, and you can improve your finances and reach your goals.