DON’T LET DEBT GET YOU DOWN

When the debit orders don't go through and the credit collectors start phoning, you can lose heart and feel you’ll never get out of your financial trouble. But here are some ideas on how to get rid of debt depression.

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Since the pandemic started, even more people are living pay cheque to pay cheque. Many have lost their jobs as businesses scale down or close. Others were hit by unexpected expenses or simply the rising cost of living.

There are sensible steps you can take to work off debt. But first you might have to deal with the emotional damage.

There’s a thing called debt depression – and it can be as bad for your well-being as having the electricity cut off or running out of credit.

“Debt depression is not a formal clinical diagnosis,” explains therapist Joyce Marter, author of The Financial Mindset Fix: A Mental Fitness Program for an Abundant Life. "It's a term used to describe depressive symptoms brought on by the emotional stress of debt.”

FEELING UNWORTHY
Research in 2013 found that people with a higher amount of debt self-reported higher levels of stress, higher blood pressure and worse physical health and wellness overall.

“Our ego is our mind’s understanding of ourselves,” Marter says, "and debt can cause us to feel unworthy." But you deserving all that is good as much as everyone else. "Your financial problems are how you are, not who you are.”

If you keep telling yourself your money problems are too great or you’re not the kind of person who can sort themselves out, it can feel impossible to improve your situation.



FACING THE FACTS
You have to take a good look at your situation. It will be hard, but you’ll feel more in control of your life if you tackle your debt with a workable plan.

Start by recognising any unhealthy ways you have of coping with the bad feelings. It could be impulse buys – those deals popping up on your phone can be your downfall. Some people may abuse alcohol, medication or substances. Plain denial is also a false escape route. None of these will make the problem go away.

To combat the negative urges, go for a walk, call a friend, listen to music, do exercises or chores, work on your hobby.

Talking to a sensible friend or family member can help – just not the kind of person who responds with “Yes, it’s been tough for everyone” or “You think you have problems?” Discovering you’re not the only one feeling down about debt can be a comfort and maybe you can help each other with plans such as saving by buying groceries in bulk and sharing.

Related article: Payday loans: What to watch out for

TAKE ACTION
There are things you can do now that could save you a good amount of stress tomorrow.

1. Think about the good things in your life and maybe problems in the past which turned out not as big as expected. You have to be optimistic to make positive changes.

2. Doing nothing about the problem is easy, but not useful. Explain your situation to your creditors and see if they can help you work out a realistic payment plan. Some can be surprisingly understanding if they see you’re not trying to dodge your responsibilities.

3. Look at your spending and cut what isn’t necessary and could save you money. The basics such as food, rent and the children come first.

Related article: How to make your salary stretch

4. Work out how much you really earn and actually spend. Then you can budget. Knowing where the money goes and seeing debts go down as you pay off will help ease the stress.

5. Keep going steadily and don’t get disheartened if you slip up. Falling for a special deal you can’t afford, doesn’t mean you’re weak. It means you’re vulnerable. And you’ll get stronger.

Related article: 7 Steps to save you from debt

Sources: https://www.tropicalfcu.com, https://www.verywellmind.com, https://psychcentral.com, https://www.debt.org