Stress affects millions of people, and when it’s tied to financial issues like debt, it can feel even more overwhelming. That’s why initiatives like Stress Awareness Day, held on Wednesday 6th November this year, are essential for highlighting the impact of stress on our lives and encouraging steps to manage and reduce it.
At MoneyPlus, we understand that debt is one of the most common sources of stress for many households. Financial burdens, especially in today’s economic climate, can make everyday life feel overwhelming. So in this article, we’ll explore how debt contributes to stress and what steps you can take to relieve that burden.
The link between debt and stress
Debt can feel like a heavy weight that’s always hanging over you. Whether it’s credit card debt, personal loans, or outstanding bills, the constant worry about repayments, mounting interest and possible legal consequences can lead to high levels of stress.
When debt-related stress is left unchecked, it can manifest in various ways, including:
- Insomnia
- Weight gain
- Depression
- Anxiety
- Relationship difficulties
It’s essential to take steps not only to manage your debt but also to reduce the stress that comes with it.
Ways to reduce debt and worry
Managing your debt may seem like a daunting task, but with the right strategies, you can start reducing both your financial burden and the associated stress. Below are some practical tips:
Understand your debt
The first step in dealing with debt is understanding the full picture. Create a list of all your debts, including credit cards, loans and any unpaid bills. Make sure to note the interest rates and minimum for each.
This may seem overwhelming at first, but knowing exactly what you owe is key to making a plan to tackle it. Sometimes the fear of the unknown makes the problem seem bigger than it really is. Once you have a clear view of your financial situation, you can begin to take steps to reduce it.
Create a budget
A realistic budget is essential for managing debt. List all of your income and expenses, including your debt repayments. This will help you see where you can cut back or save, enabling you to allocate more money towards paying off your debt.
Budgeting can also give you a sense of control over your finances, which can significantly reduce stress. Use budgeting tools or apps to help keep track of your spending and stay within your limits.
Prioritise your debts
Not all debt is created equal. Focus on paying off debts with the highest interest rates first, as these will cost you the most over time. This is often referred to as the “avalanche method.”
Alternatively, you can try the “snowball method”, where you focus on clearing smaller debts first to gain a sense of accomplishment. Once you’ve paid off one debt, take the money you were putting towards that and apply it to the next debt. This snowball effect can help you gain momentum and reduce your overall debt faster.
Consider debt consolidation
If you have multiple debts, debt consolidation could be a viable option. This involves combining your debts into a single loan with a lower interest rate, making it easier to manage your payments.
By reducing the number of creditors you owe, debt consolidation can simplify your finances and reduce stress. Make sure to research your options and check whether a consolidation loan is suitable for your situation. It’s important to avoid consolidating your debt into something that could cost more in the long run.
Talk to a financial adviser
If you’re struggling to manage your debt alone, don’t hesitate to seek professional help. Financial advisers and debt specialists can help you create a repayment plan tailored to your situation. At MoneyPlus, we offer expert debt advice to help you understand your options, whether that’s through Debt Management Plans (DMPs), Individual Voluntary Arrangements (IVAs), or other solutions that suit your needs. Having someone in your corner can help alleviate the mental load, as you’ll know you have a plan in place.
Set realistic goals
One of the reasons debt can be so stressful is that it often feels never-ending. To combat this, break your debt repayment journey into smaller, achievable goals. Whether it’s paying off a small amount of your debt or simply sticking to your budget for a month, celebrating these wins can give you the motivation to keep going. Remember, managing debt is a marathon, not a sprint. Setting realistic, time-bound goals can help you stay focused and reduce stress along the way.
Practice self-care
While managing your finances is crucial, it’s also important to take care of your mental and physical health. Make time for activities that help you relax and recharge, such as exercising, practicing mindfulness, or simply spending time with family and friends. By balancing financial responsibility with self-care, you’ll be better equipped to handle the challenges of debt without letting it negatively impact your well-being.
Stress Awareness Day is the perfect reminder to take control of your debt and reduce the stress it causes. At MoneyPlus, we understand how overwhelming debt can be, and we’re here to help. Our team of experienced debt advisers can guide you through your options, whether that’s creating a manageable repayment plan or exploring debt relief options tailored to your situation.
If you’re struggling with debt and want to reduce the financial burden that’s weighing on your mind, don’t hesitate to reach out to our expert advisers by visiting our website or giving us a call. Taking that first step can make all the difference.
