There can be multiple reasons as to why one falls into the debt trap. And, if that person is suffering from any sort of mental depression, then that may consequently affect your financial status. The contrary is always inevitable. Some of you may ignore this point. However, this is quite vital. To know more about this specific topic, you need to know the probable reasons as to how and why people get into debt?

What makes people go into debt?

There is a myth that goes around saying that those who exhibit a lavish lifestyle, end up being in debt.  However, the truth might appal you and break the myth vehemently. The two most explicit causes of debt are- joblessness and redundancy. These two social factors trigger a shaky-financial status. No matter what attitude or mode of lifestyle one chooses to lead, redundancy or unemployment can potentially harm you.

You may have lost your job, or separated from your partner, physically or mentally unstable, and many such reasons may make it difficult for you to pay off your monthly instalments. The shift from this chaotic situation to a stable one takes time and does not happen overnight. However, this also depends on the time period to which you are likely to endure the financial crisis.

Does unstable mental health affect unstable financial crisis?

Reports and surveys have stated that individuals suffering from depression, anxiety or bipolar are prone to debt issues. To your surprise, there are many mental, such issues that contribute towards your failure to manage your money. Have a look at these issues.

  • Low energy

If you don’t feel energetic, then it is going to be difficult for you to keep a track on your wealth, and even life decision. In other words, if you are not well, you will lack the required energy.

  • Sick leaves

You cannot deny this. If you regularly fall sick, you will have to take time off your scheduled work, and you obviously know the consequences. Low salary will be the leading cause of your financial dis-management. At the end of the month, you will have less money to pay off your loans. Can you find the relation?

  • Hospital bills

This is something most of you will agree to. Hospital bills keep rising, and your debts keep growing. How to cut short on that? Absolutely, there is no way. Health comes first. Therefore, if you don’t keep your health safe and secured, your bills are going to get high.

  • Mental Health issues

Mental illness such as dementia, bipolar, etc. may hamper your money management skills. In medical terms, the skill of taking decisions is referred to as mental capacity. These studies suggest that mental illness directly affects your financial status.

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How does debt ruin your mental stability?

A report conducted by the Royal College of Psychiatrists stated that more than half of America’s population has debt. And, a major proportion of these debtors have a mental illness. They also tend to follow a persistent aura of perplexity and mood swings.

These anxieties usually arise if anyone fails to receive support or relaxation from their creditors. This feeling keeps accumulating if your family, friends, and acquaintances stay indifferent or ignorant towards your condition. Once you fail to manage or keep a track on the monthly instalments, you start losing ground. The debt amount increases because of your inconsistency. If you fail to pay one instalment, you need to revise your schedule and planning. You would have to pay more on your next instalment. Now, that strains your financial status visit .

Debt and mental health are correlated. If you miss out on sound sleep regularly, that will induce fluctuating health and managing skills. And, if you fail to pay your debts, your mental health fluctuates. All the causes mentioned above contribute to mental health disorders.

Do you have a debt problem?

Debt issues do not happen overnight. It is a gradual process. If you want to eliminate this crisis, then you have to identify the early signs of a financial breakdown. Here is a list of questions that should ask yourself and find out the answers. Have a look.

  1. Do you feel anxious when it comes to pondering about how to clear off your monthly instalments? If you fail to answer this at one shot, then definitely there is some trace of problem. Let your instincts answer this for you. No need of any false consolation.
  1. Do you often miss out on your instalments? Does it have a particular pattern? Are you really struggling to pay it off or is it smooth? There should not be any confusion regarding this. If you can pay it off easily, that’s something great. However, if the answer is in negative, you should better buck up.
  1. Are you avoiding calls or any sort of communication from strangers? If the answer is yes, that would mean that you are also avoiding posted letters and emails. That’s not a good sign. If you are scared, then there is something fishy.
  1. Are you unable to keep the money for sudden occasions if there is an emergency? Are you unable to pay off a monthly instalment if in that month you had some additional expense?

You need to answer these questions. And, if some of these answers are not in your favour, then it is time to consider a debt consolidation programme.

Help is given to those who ask for it. As the popular proverb goes ‘if there is a will there is a way.’ There are lots of government aids available for you. Also, there is a debt consolidation relief programme that you can avail of. You can stay tuned to us for further help!