The Emotional Impact of Debt
LaQueshia Clemons, a licensed clinical social worker and accredited financial counselor, believes that debt is not just about finances, but it also involves a lot of emotions. She, as the founder of Freedom Life Therapy and Wellness in Connecticut, witnesses the impact of debt-related anxiety and worries in her daily interactions with her clients.
The Emotional Consequences of Carrying Debt
According to a recent survey by personal finance company Achieve and Money.com, nearly half of the 2,000 Americans surveyed suffer from anxiety or sleeplessness due to their debts. The emotional consequences of debt even stretch to personal relationships, with approximately one in four respondents reporting intimacy issues with their partner as a result of financial stress.
Overcoming Hopelessness in the Face of Debt
In her work, Clemons often encounters clients who feel hopeless about their debt situation. This is echoed by the Achieve survey, where almost 43% of the respondents admitted feeling hopeless about their financial predicament. To address this, Clemons shares her personal experiences and strategies in overcoming debt, offering a beacon of hope to her clients that it is indeed possible to overcome financial difficulties with time and discipline.
Dealing With Debt-Related Shame and Isolation
Cohen Taylor, a behavioral wealth specialist at Mission Wealth in Atlanta, explains that debt often breeds feelings of shame and embarrassment, leading to social isolation and avoidance of the problem. She highlights the importance of proactive behavior in dealing with debt and discourages avoidance. Instead, she encourages individuals to seek professional help and explore options like debt consolidation and repayment plans.
The Connection Between Debt and Mental Health
Emily Mendez, the founder of Indiana-based Priceless Copy, shares her personal experience where her mental health issues and debt were intricately linked. After being diagnosed with bipolar disorder, she struggled with the weight of a business loan that she took prior to her diagnosis. The financial stress exacerbated her mental health condition, making her recovery more complex.
Tackling Debt-Related Shame and Improving Financial Health
Overcoming shame is the first step in dealing with debt, says Taylor. She encourages individuals to separate their self-worth from their debt and see it as a problem to be addressed and not a reflection of their personal value. Additionally, she suggests considering the root causes of debt and noticing spending patterns to avoid future debt. Having a positive mindset and interrupting negative thought patterns are crucial parts of the journey towards financial health.
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