Collaborative Post¦ What is your definition of financial well-being?
For many, it is the idea of being comfortable with the money that they earn, leading a debt-free life, and having enough savings for their future. However, the current economic scenario makes it challenging for a large portion of the population to feel financially secure.
People in the UK are under a lot of financial pressure due to high living costs, inflation, and stagnant wages. Economic problems have led to stress among 40% of UK adults. Approximately 1.5 million people who are in debt are also currently experiencing mental health issues, which shows the correlation between financial health and mental health.
Being in unhealthy debt means your income is insufficient to cover your daily living expenses while paying off the loan. You may keep defaulting on your payment, incur more interest and fines, and get sucked in that vicious debt cycle until you are on the brink of insolvency or, in certain cases, have to declare bankruptcy.
Let us explore how debt affects your overall well-being.
How Does Debt Impact Your Mental Health?
Stress
When you have huge outstanding loans, you may constantly think about repaying the debt. You may keep worrying about how to increase your income, which bills to prioritise, and how best to save. This constant worrying can lead to stress, insomnia and even panic attacks in the middle of the day, impacting your professional and personal life.
Depression
Financial trouble can lead to depression, and depression can lead to financial challenges, trapping you in a vicious cycle. People with depression often find it difficult to concentrate, follow orders, sleep, and communicate effectively. This can lead to poor performance at work or even job loss, which can further make it difficult to pay back your loan. Similarly, being in debt can cause increased stress and anxiety, which can ultimately lead to depression.
If you want to be financially independent and live a debt-free life, it is important to manage your finances with proper budgeting tips and practice mindfulness to be in control of your mental health.
Social Isolation
People who suffer from bad debt often isolate themselves from others, especially their loved ones. If you owe a lot of money, you suffer from an inferiority complex from friends or siblings who might be in a better financial position than you. You can refrain from spending time with your family and friends, avoid social gatherings, and be lost in your own thoughts. This can further amplify your stress, anxiety and depression.
Let us now look at how debt impacts physical health.
How Does Debt Impact Your Physical Health?
High Blood Pressure and Diabetes
People who are in debt constantly suffer from stress and anxiety, which can lead to hypertension and diabetes. The inability to sleep can also lead to high blood pressure, as your body is constantly in the fight-or-flight mode and you are regulated majorly by adrenaline and cortisol hormones. Social isolation can cause you to stay cooped inside the house, leading to a lack of physical activity. A sedentary lifestyle is one of the major reasons behind high blood sugar.
Compromised Immunity
Stress, high blood pressure, diabetes, and insomnia all put a strain on your heart health, gut health and overall immunity. Moreover, those in debt, find it difficult to afford a proper diet. Eating junk food or resorting to addiction such as smoking, alcoholism and drugs can further take a toll on your health while putting more strain on your finances.
Those who suffer from financial troubles can find it difficult to get regular exercise at the gym or even step outdoors due to increased chances of panic attacks. This lack of physical activity can make it difficult to maintain proper fitness levels and can lead to obesity and low energy levels. Poor physical health can impact your ability to work and make it challenging to pay off your credit card bills and pending loan instalments.
How Does Debt Impact Your Emotional Health and Relationships
A person’s debt will have a detrimental effect on everyone and everything in their life. Financial issues can directly impact a person’s emotional well-being, the effects of which often affect their family, especially their spouse or children.
You may feel guilty or helpless when you cannot tend to your family’s needs and demands because you are neck-deep in loans. Being stressed about impending bills can make you irritable, leading to increased arguments and confrontations. People in debt often try to hide their financial situation from their partners, which leads to trust issues and even a breakdown in their relationship.
In Conclusion
Debt can impact your physical, mental, and emotional health. However, if you keep a positive mindset, seek help from professionals or loved ones, and be more mindful of your spending habits, you can not only repay your loans but also lead a happy and healthy life. Financial literacy is the key to leading a wholesome life where you are in control of your money instead of your money controlling you.
Cover photo by Towfiqu barbhuiya on Unsplash