The Debt Stress Factor
Debt can easily start to feel like a scary, cold hand around your neck or an overloaded saddle. The stress that goes hand-in-hand with debt can be overwhelming. According to the American Psychological Association, 72 percent of Americans are somewhat stressed about money, and studies show that 22 percent experienced “extreme” stress over their finances.
Many of us have had a point in our lives when money was tight. As you get older, it becomes more and more stressful, especially when you begin adding responsibilities. Being stressed about money on your own is one thing, but having a partner or spouse increases that worry even if you are in a dual-income situation. There are two of you, and if you are both struggling, it can really pile up on you. Adding kids to the mix, and you have a recipe for massive stress in a very short space of time.
The serious effects that stress has on your health are well-documented, and if you get sick, you are going to have an even worse situation on your hands. And stress-related maladies can turn into chronic, long-term health issues.
Not only will you be ill, which will affect your ability to work and earn money, which in turn affects your ability to pay back the money you owe, you will also incur healthcare costs. Stress can cause many physical reactions, it can even cause heart problems or depression. On top of creating new health issues to deal with, it can exacerbate existing or underlying conditions.
If you are stockpiling debt, whether it be credit card debt or otherwise, then getting out of it as soon as possible is the best way to get healthy. If you feel like you are snowed under by mounting interest and loans that have gotten away from you, it might be time to get some advice from professionals who could advise you on possible strategies to help relieve the situation.
Some folks opt for debt consolidation loans, which give you a bit of breathing room and lump all your debts together with one payment. Be careful though, as you might be paying more interest over time if you take out a longer-term loan. Many companies provide debt relief counseling and don’t charge you an arm and a leg in the process.
Do your research, and figure out what is best for you. Of course, making sure you are not in debt is the best way to safeguard your health, both mental and physical. Start saving early, and if you can avoid taking loans, especially large ones or impulse buys on luxury items, then paying for something with money you already have is always the better option. That brand-new car won’t be so impressive to you in a few years, and the money you spent could have been used to pay off other loans or saved.
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC