(Newswire.net — March 7, 2019) — Carrying debt is simply a way of life in America at this point. The average U.S. consumer has about $38,000 in personal debt, not even counting home mortgages—a figure that’s going up year over year. A quarter of this debt comes from credit cards, which is risky because this form of “bad debt” tends to saddle consumers with high interest rates. Many people end up taking on debt to pay for the things they need: medical care, a vehicle, a home, an education, etc.
There are plenty of financial ramifications of living with debt. But what often flies under the radar is the mental burden of doing so. Debt can bring up any number of negative emotions, from anxiety to denial, depression, anger and shame. These adverse mental health effects can, in turn, make it more difficult for people to address their debt head on.
An important step for anyone trying to take control over their financial life is to destigmatize debt, turning what was once financial shame into power.
The Relationship Between Debt and Shame
Debt and shame often go hand in hand. If you’ve experienced this emotion as a result of your money situation, you’re certainly not alone. The Simple Dollar cites a survey that found 85 percent of respondents “are hesitant to talk about their credit card debt” with other people. Many people feel highly pressured to portray themselves as debt-free to family, friends and acquaintances—something that can actually fuel debt even more in an unfortunate “keeping up with the Joneses” cycle of spending.
Here’s how Totally Money outlines this debt-shame cycle: People often feel shame for being unable to keep up with peers financially or uphold a certain lifestyle. This can fuel overspending, increasing debt and money-related shame over time. Repeat as needed. This cycle is further exacerbated when people react to shame and other negative emotions with spending binges. It’s easy to see how this cycle can get out of control, fast—leaving consumers feeling more powerless than ever.
The good news is that simply being aware of debt-related shame is the first step in breaking the harmful cycle and taking control of your overall financial situation. Acknowledging your debt and its effect on your mental health is a huge step! From there, you can start to work proactively on the root causes of debt.
Addressing Your Debt at the Source
It’s very easy to feel bogged down in the symptoms of debt, but the only way to eliminate it is to tackle it at its source. Start by assessing the types and amounts of debt you carry. Ask yourself: Will do-it-yourself debt repayment be enough, or do you need help?
Consider strategies like credit counseling, debt consolidation, debt settlement and bankruptcy—each with its unique set of pros and cons. Overcoming shame will help you ask the right questions so you can find the best solution for you. As one consumer wrote in their recent Freedom Debt Relief review, “For all that are in debt, don’t be ashamed; it’s a learning process and once it’s over you will be happier.” Reaching out is the first step.
If you decide to tackle your debt on your own, sit down and prioritize the order in which you’ll repay your balances. While it’s important to make the minimum payment on all accounts, having a plan will help you gain momentum as you go. Many experts recommend paying off those with the highest interest rates first, then working your way downward. Others suggest starting with the smallest balance and working your way up to the largest.
However you tackle your debt, the first step is freeing yourself from shame so you can see your financial situation clearly. There’s no shame in debt—you’re not alone and there is a solution.