Debt and mental health have a certain connection, no matter the amount of debt you have. Debt can really affect your psychology and render you ineffective, making your life chaotic.
Moreover, you can become a victim of mental health problems like anxiety, stress, depression, and resentment. This can make it hard to have normal healthy relationships with others. You might even end up with no friends. Debt can also make you lose your self-confidence.
However, there is always a solution to debt apart from declaring bankruptcy. You can always seek professional help and find the perfect way to make timely payments. This way you get to escape the psychological effects and experience of having debts.
Consequently, your mental health and state of health can lead you to a financial burden. This is because mental health diseases like bipolar, depression and dementia can make it hard to make wise financial decisions or have the energy to keep up with your finances.
Likewise, treating such mental diseases can leave you with enormous debts. Besides, some psychological diseases of the mind need constant treatments and checkups as well as therapy that can be costly, leading you into more debts.
Therefore, debt can affect your mental state and if you are already diagnosed with any mental issue, the experience can be worse no matter the amount owed.
Nonetheless, debt is never entirely your fault as there are many viable reasons as to why you kept so many lists of creditors. You should never let it define you, or make you feel ashamed.
Here are some viable reasons as to why most people get into debt:
How Do People Often Get Into Debt
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- Major life changes can affect your finances, as you might need to borrow money to meet some needs, especially if you just lost your job, a loved one, or partner. Likewise, coping with new situations can render you helpless. You might start to borrow without keeping track and before you know it, you have piles of debts to repay.
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- Your state of health can also pile the bills, especially if it keeps getting worse. You might lose your job, making the situation worse.
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- If you are a low-income earner, then it is likely that you will end up borrowing frequently to make ends meet. Likewise, your employment benefits can suddenly change terms or stop coming altogether, leading you to borrow.
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- Going on shopping sprees and buying things, you do not need can also affect your finances.
- Your mental state can also lead you to ignore people, making it hard to communicate or concentrate on what matters like paperwork and bills. This can leave you with piles of utility debts that can take a toll on your finances.
However, you can always seek professional help to get out of debt. You should note that some debt and money advisers only offer advice while others give advice and representation.
Moreover, others are internet advised while others prefer telephone or face-to-face advice. It is up to you to decide on the best communication method, in order to lift off the financial burden off your shoulders.
Here are some steps you can take to help clear your debts and prevent any mental breakdown and related health issues:
Ways to Help Clear Your Debt
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IVAs
Individual Voluntary Arrangements, IVA, is not for everyone, but it the best option if you do not want to deal with creditors directly and are in a position to make monthly sizeable payments within 3-5 years.
The only way to know if you eligible for an IVA is to make contact with a reputable IVA company like https://findmyiva.co.uk/. Here you will find the best solutions for clearing your debt, apart from IVA. This will depend on your current debt and income status.
If IVA proves to be the best solution to your current debt crisis, then you will be assigned with a reputable insolvency expert to mediate between you and your creditors, until the debt is cleared.
It is this insolvency practitioner, who will negotiate an affordable fixed monthly payment, to help clear your debts. It does not matter if it is personal loans, utility bills, credit card debt or housing debt, IVA can always help you if you are eligible.
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Debt Management Plan
For this option, you might need to make a single monthly payment to a reputable debt management agency. In return, this debt management agency will make payment to several creditors, on your behalf.
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Repay the Debt
You can propose to make a repayment offer if you have some income. As long as you can meet this repayment plan, the creditor will have to freeze all interests on the debt, until cleared.
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Write-Off the Debt
As much as it is not a standard practice, some creditors can write off the debt in case the debtor has mental health issues.
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Bankruptcy
Bankruptcy usually lasts for a year, with restrictions on financial services. After which the debt is written-off and the bankruptcy registered with credit agencies. This makes it hard to get any financial services in future.
You should always avoid bankruptcy unless the debt is huge and you do not have any assets.
Conclusion
Conclusively, it is better to find a solution to clearing your debt ASAP, as it can taint your image among creditors and affect your mental state. Besides, debts can ruin friendships, making you lose contact even with family members.
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