Certain times of the month can be especially hard when you receive bills, or you look at your bank balance, and things aren’t what you’d hoped they would be. The state of your finances affects much of how you do life. This makes having a good handle on your financial situation a significant issue. A key aspect of this is debt free living so that you aren’t overburdened.

What debt-free living means

To an extent, it’s almost impossible to not have any debt whatsoever. If you want to buy a house, go to college, get a car, or make a significant purchase, more likely than not you’ll need to get a loan to finance it. This kind of debt isn’t necessarily bad, because if it’s leveraged well, what you get out of it can help you increase your net worth, or it is an investment that has future value.

There is a difference between this kind of debt and the kind of debt that doesn’t add value and hurts your financial profile. If you can’t avoid debt altogether, then a healthy financial goal would be to limit yourself to the good kind of debt. Debt-free living could then look like either having no debt at all or only having the good kind of debt that will potentially increase your wealth.

Debt-free living allows you increased flexibility and peace of mind. It is right to try and pay what you owe. As the verse says, “Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor. Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law.” (Romans 13:7-8, NIV)

However, it’s important to recognize certain realities that confront people. It’s mistaken to assume that when people find themselves in debt (especially the bad kind of debt), it’s because of having been excessive with their spending. One can’t control realities such as losing a job, getting sick, or losing a partner, which all make it hard to meet financial obligations.

The impact of debt

Having debt can impact a person in many negative ways, including their mental, emotional, and physical well-being. When you have repayments you need to make but are lacking the resources necessary to make it happen, that affects you. Some of the ways having and struggling with debt can affect you include the following:

Struggling with self-care

When you don’t have disposable income to direct to activities that promote your health, that can affect your health. This can include being able to have a gym membership or taking time off from work to recharge. You might skip medication, healthcare appointments, or screenings to cut down costs, which can make your health suffer.

Having less disposable income due to debt can also mean you eat an unbalanced diet and less nutritious eating choices. This can put you at higher risk of conditions such as diabetes, obesity, and heart disease. This, in turn, can make you miss work or accrue more debt from medical expenses.

Bad sleep

When you’re in debt, that can cause a lot of worry as one ponders to consequences of defaulting. Worrying can affect the quality of your sleep, which affects your energy levels as well as your mood. This can affect your concentration and ability to work well, and it can impact the quality of your relationships with others.

Anxiety

Having debt can make you worry as you consider your options. When you feel anxious and stressed over the long term, that can also affect your health because stress strains your body.

Relationship difficulties

Debt limits the resources available to you, which can make it hard to plan relaxation time with loved ones, especially when such plans cost money. When feeling stressed, it’s easy to become irritable or resentful, and that can harm relationships over the long term. Disagreements and conflicts about money are some of the leading causes of divorce; they can strain a relationship to the breaking point.

A vicious cycle

When you’re in debt, you can cope with it in unhealthy ways that worsen the situation. These include using resources earmarked for something else, like emergencies, a college fund for your kids, or your retirement, to cover nonessentials. A person may also turn to unhealthy ways of coping like impulse buying for a temporary high, substance abuse, or emotional eating as a way of coping. These can only make life harder in the long run.

Moving toward debt-free living

Debt can have many negative consequences on you, your health, and your relationships. Getting your debt under control can be quite challenging, but it isn’t impossible. You’re not alone in dealing with debt issues. You don’t have to do it all or figure it out by yourself. You certainly shouldn’t avoid seeking help due to any social stigma that may linger over having debt.

There are several ways you can begin addressing your debt and healthy ways to cope with the stresses that come with debt. Some of these include:

Take a thorough and honest look at your debt

Look at your credit reports and all of the debts you owe, itemizing them, and noting when each debt is due, as well as the interest owed. This will help you have a clearer picture of your situation, and it can help with creating the structure for repaying the debt.

Connecting with a financial advisor

A financial advisor or a credit counselor can help you review your situation and chart a way forward. It’s important that you find a reputable financial advisor, as there are unscrupulous individuals out there who will offer shortcuts and quick fixes that don’t work and further ensnare you in debt or even legal trouble.

Budget

After seeing what you owe, consider what resources are available to you to help repay the debt. Create a budget factoring in what you can pay each month toward your debt. Seeing what you owe and what you have to pay back can help you see where you need to cut back and ensure that you’re making a minimum payment to take care of the debt.

Reach out to your creditors

It is often helpful to speak with your creditors and to make your situation known. You might be able to work out a workable payment plan with them.

Make self-care a priority

You need to take care of your mental and physical health now, and it can’t wait until you’ve paid off your debts. In fact, prioritizing your well-being can help you in the process of reducing your debt. You can spend time with loved ones, try to avoid drugs and alcohol, find cheaper alternatives to healthy foods, prioritize sleep, and do things that make you happy, like playing with a pet or reading.

You can also try to maintain a positive outlook by reframing your thoughts and challenging negative self-talk. There are low-cost ways to stay healthy, including using your body weight for strength training at home, jogging, or taking a walk. Exercise can help with reducing stress levels, and you can also use mindfulness, relaxation exercises, or deep breathing to help address stress, too.

Talk with someone

In addition to speaking with a financial advisor or credit counselor, you can also talk to someone that you trust about what’s going on. A loved one such as a friend or relative can be a huge help in overcoming feelings of isolation, hopelessness, or being overwhelmed by your circumstances.

Getting help

If you feel like the debts you owe are swallowing you up and are impacting your mental health, consider making an appointment right away with a mental health professional at San Diego Christian Counseling in California.

A counselor in San Diego, California can help you cultivate healthy coping mechanisms, remain motivated to take care of yourself, and focus on solutions in this season. Being mired in debt can feel debilitating, but you can improve your mental, physical, and emotional well-being even as you deal with your debt. We look forward to your journey ahead.