The Emotional Effects of Debt

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No matter what the reason for your debt is, borrowing money has emotional effects. There are several emotions one would feel and they can affect people in various ways. Here is the emotional effects debt will bring:


Some people are in denial when it comes to their debt. They underestimate how much they owe and would open a new credit when they maxed out the previous one. They would ignore bills and calls from collection agencies, believing everyone is in the same boat. Ignoring reality may provide temporary relief but this will lead to more debt in the future.


When your debt is looming and you can’t pay it, stress will quickly settle in. Stress will affect your emotions, physique, cognition and behaviour. You may become lethargic and prone to sickness. Not only does it makes you pessimistic, but it also hinders your ability to focus and makes you exhibit nervous behaviour.


People struggling with debt are more likely to suffer from anxiety. It will manifest in one’s physical wellness, like lack of sleep or inability to focus. Anxiety will make one feel hopeless and cause low self-esteem. Sometimes, it leads to further financial difficulties because to escape anxiety, some people may splurge.


Serious debt will lead to irritation and resentment, affecting relationships with family and friends. Resentment caused by debt is why some couples may divorce. Resentment and irritation will lead to arguments, and frequent arguments would lead to a strained relationship.


Anyone struggling to keep their head above water because of debt is sure to feel regret. Feeling regret is the result of poor financial decisions.

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