The psychological, physical, and relationship effects from debt are detrimental. Many Americans believe that having debt is a necessary factor of life. Whether you are going to college or buying a home, having what some may call “good debt” can assist you in going further in those goals. On the other hand, medical or credit card debt has an adverse effect on your income through interest charges that can cause a chain reaction of borrowing and more debt, all while not having the same potential advantages as a business or student loan. What you may not know is the ways debt can negatively affect your life and how being debt-free can benefit you in non-financial aspects.
Psychological
Research has shown that young adults with elevated levels of debt show increased levels of stress and depression and decreased levels of self-esteem and cognitive function. This is understandable as having debt can lead to feelings of being trapped in a cycle of worrying about being able to make your payments and what would happen if you were unable to make payments. When under this amount of stress, your ability to make sound financial decisions decreases; however, you can expect cognitive functions such as this to rise in correlation to lowering debt. In addition to having higher self-confidence, decreased anxiety, and sleeping better, without the stress of repaying debt you are able to dedicate more time and energy into your family, work, and hobbies.
Physical
Stress not only effects your mental health, but your physical health as well. Increased mental distress has been linked to a myriad of illnesses such as heart disease, diabetes, stomach ulcers, insomnia, high blood pressure, and migraines. Insomnia alone lowers your immunity increasing your chances of becoming ill. Less stress leads to better sleep which gives you a better chance of fighting viruses and colds. Besides stress, the simple lack of available funds leads to seeing your doctor or dentist less because you can’t afford the bills. Paying off your debt allows you to receive better preventative care and see a doctor when you need one.
Relationships
It can be extremely difficult to not allow the negative emotions caused by debt to seep into every aspect of your life. Increased stress and anxiety can lead to feelings of anger and resentment. You may find yourself resenting your friends and family for their ability to spend money on life’s pleasures or feeling angry that you are underpaid at your job. Money problems are also likely to affect your marriage since it is known to be one of the most common causes for divorce. When your debt is repaid you will have developed better communication with your spouse which will bring you closer together. Furthermore, overcoming debt can also allow you to take better care of your children by having more available income for things such as braces or a college fund and more available time for sports and helping with homework.
Account Resolution Team is committed to helping Americans get out of debt. Call 423-586-7613 or visit www.accountresolutionteam.com
