Like it or not, the state of your finances can and will affect your physical and mental well-being.
If you are experiencing chronic financial anxiety – the near-constant state of worry, stress or emotional disturbance over the state of your financial affairs – you might also be prone to disorders and behaviors that can negatively affect your body and mind.
Sufferers of financial anxiety are also likely exhibiting sleep disorders, weight fluctuations and disruptions from normal eating habits, unexplained aches and pains, as well as physical health concerns such as headaches, heart and blood pressure problems, and stomach issues.
Financial anxiety can also affect mental health. Feeling burdened by money worries could lead to the waning of self-confidence or sense of competence, as well as exacerbating the feeling of isolation.
With such worrying effects arising from financial anxiety, it is clearly a condition that needs to be avoided or immediately addressed if one is a afflicted by it.
A recent CNBC article cites the aside from job loss, the continually rising cost of living and the lack of knowledge regarding personal finance, financial anxiety is also commonly caused by money missteps.
One such misstep is getting into quite a lot of debt. Whether this situation came about due to abusing your credit card, falling back on your payments to previous financial obligations, or other actions or lack thereof to put yourself in a better financial state, knowing that you owe a big sum of money can feel quite stressful.
If you find yourself in this situation, experts advise not to beat yourself up about it. The best recourse is to clear your mind and make a sound plan of action.
A step that you can take is to consider debt consolidation. As discussed in this 2021 Forbes.com article, combining multiple debts into one with a single monthly payment and usually with a lower interest rate through a personal loan or a balance transfer credit card helps to streamline your finances and speed up paying off your obligations, thereby getting you closer to being debt-free.
With that said, you would still need to think carefully on whether debt consolidation is the best option for you. The same article posits that debt consolidation may come with added costs – such as origination fees, balance transfer fees, closing costs and annual fees – and does not resolve underlying financial issues such as lousy spending habits which may lead you to getting into more debt.
Debt consolidation may be your best bet if your total debt amount is high enough to justify the additional fees and efforts involved in getting a new loan, if you are set on working to improve your finances through positive changes in your money habits and if your current cash flow is sufficient cover the new monthly payments. Having a credit score high enough to qualify for a lower interest rate will also go a long way towards making debt consolidation work for you.
At the heart of this issue is the need to have a thorough understanding of yourself and your financial habits, your current financial standing and your future financial prospects to be able to gauge whether debt consolidation is the right course of action for you.
It also helps to read more about debt consolidation so you can take the first important steps towards your financial freedom and, hopefully, to a better physical and mental state.