How to Manage Your Mental Health When You Are Plagued with Debt

How to Manage Your Mental Health When You Are Plagued with Debt from North Carolina Lifestyle Blogger Adventures of Frugal Mom

Much has been written about managing debts and sticking to a well-thought-out budget. Then, most of these write-ups avoid how loans affect your mental health. Yet both your finance and debt are correlated. There is no doubt about the same. Then, if you use your common sense and read about contemporary physiological science, you will know how debt affects your mental wellbeing if you do not pay off your creditors and keep the loan lingering for months or years. Research shows that more you think about how to repay your loan, the more you will fall sick. 

Though money is not everything in your life, the same is necessary to pay off your multiple debts. Just as relationship and job satisfaction, digging out of debt is imperative for your mental wellbeing. According to an article published on, taking a calm, composed, unruffled, and practical approach towards your debt has multiple benefits. Then, remaining calm is not as easy as it sounds. You need to learn to deal with debt for your mental wellness. Based on Statistics Canada data, for every100 dollars of disposable earning, Canadian families have 168 dollars of consumer debt. For your better understanding, here are some ways to cope with debt for your mental health:

Control your finances now and in the future 

To attain financial solvency, take stock of your finances now as well as 10 years down the line. It is easier said than done. Let us explain this point with the help of an example. Say, for instance, you have $120,000 worth of student loan. You leave the city because you cannot afford the expenses of living in a big city anymore. You compromise with your lifestyle, the way you eat, your shopping habits, and things like that. You feel emotionally drained, depressed, and disillusioned. When you keep living like this for months, it affects your mental health and you live in employment limbo. Nothing seems right for you and you are on the verge of a nervous breakdown. 

When you think of a plan to dig out of your debt is just one piece of the solution. You need to take care of your emotional wellbeing too while paying off your creditors. Change your lifestyle until your debt is paid. Stop eating out, shopping, watching movies at expensive theaters, and avoid making any travel plans until you are debt-free. In simple words, you need to take stock of your finances today and in the next few years until you are financially stable again. 

Keep your mind calm

You might be wondering how it is possible at all. Well, let us explain. Speak aloud, “I am not in debt.” It does not mean you are a stupid, ignorant, or lazy person. It is only a way to vent out your pent-up emotions. Try this tactic and you will feel good. In your mind, you know you make your payments on time to your creditors. Based on a research material published in the Journal of Consumer Psychology, brooding over past blunders makes you repeat them again. Therefore, say that you are not in debt and will not take out any additional loan. If you have too many small debts, merge them into one monthly payment so that you can clear all dues on time. You can look for lenders online with positive and genuine debt consolidation reviews to make an informed decision. 

You need to stop thinking about your debt all the time and forgive yourself about the mistakes committed. Take it easy and take a deep breath. It will help you relax. Join a meditation class for some time. You can meditate on your own. Sit at a quiet corner and ask questions to yourself in silence. You will feel better. Learn your lessons from your past mistakes and move on in life without feeling emotionally drained and depressed. You can even consult a financial counselor or talk to your close friend or family member to vent out your feelings. It will keep you stress-free and relaxed. 


Keep these tips in mind to manage your debt and improve your mental wellbeing. These little things will help you repay your loan, making you feel empowered in the process.

Similar Posts:

    None Found

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.