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Effects of Financial Prudence and Debt on Mental Health


Being in debt affects more than just your bank account. It can have a negative impact on your mental health and overall life. If you’re currently in debt or on the verge of it, you’ll need to be prudent. Getting out of debt requires discipline and tenacity. However, being in a bad mental state can make this pretty hard to accomplish. Here’s how debt can impact your mental health and why you should act prudent.

Debt Causes Overwhelming Stress

Stress is something that everyone experiences, but debt can cause it to be almost unbearable. When someone is in debt, their survival instincts kick in and they don’t turn off. It can create a constant sense of urgency where you feel like you need to keep making more money. Being stressed is a part of life, and while some is considered a good thing, it can have some pretty serious effects on your body. In fact, too much stress can increase the risk of major health complications including:

  • Cardiovascular disease
  • Diabetes
  • Stroke
  • Anxiety
  • Depression
  • Mental health disorders
  • Addictions

Although it increases the risk of these issues, stress can’t cause them overnight. It falls to you to stay calm and prudent. Remember that debt is not an eternal thing. It may take a ridiculous amount of effort, but it’s not impossible to beat. You can even gain an advantage by consolidating your student loans into a private loan. That way, you can have a small nest egg as you continue to climb out of your debt. If you’re concerned about the monthly payments, you can use a student loan consolidation calculator to get an estimate of how much you’ll pay and see how much you can save. When money is tight, every cent counts.

Debt Can Cause Bad Spending Habits

Having bad spending habits is a problem within itself. But when you combine it with massive debt, it becomes a destructive behavior. If you suffer from a mental health issue, like depression, the temptation to spend is also increased. Needless to say, you should never splurge on anything you don’t need when you’re faced with the debt. It can create this endless loop of gaining money and then spending it right away. Breaking a bad habit isn’t as hard as some make it out to be. You can easily break one in a week or two as long as you have the determination.

Why You Need to be Prudent

Prudence is one of the most essential factors when getting out of debt. Being prudent means being on top of tough situations and planning ahead for the future. Checking your bank account before the purchase and thinking about the pros and cons of spending are examples of being prudent when in debt. You’ll be surprised at how much money you can save and how much debt you can pay off if you just give a little thought into things. Analyzing and critical thinking are the two most important skills to have when learning how to be more prudent.

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