Stress Management for Financial Debt
In the 21st century, debt is a normalized part of life; millennials aren’t buying homes because they’re inundated with student loan debt, unaffordable health care has our most vulnerable populations falling into bankruptcy, and stagnant wages leave us unable to come out of this tough financial climate. There’s no way to solve the economic problems which have led to peak levels of debt among U.S. citizens, and therefore, millions of Americans are instead choosing to stay positive as they attempt to set goals to manage their debt.
Types of Debt
Student loan debt is up 6 percent from last year, totaling in at $1.53 trillion in outstanding student loan debt across the United States. This type of debt has been the source of study among industries across the nation as companies seek out the reasons why newer generations are not investing like those who came before them. For the last couple of decades, there has been a huge push for higher education, as more and more organizations raise their education standards for entry-level employees. However, the increase in standards and stagnant wages has led millions of college-educated students unable to pay off their debt.
Another leading cause of debt is medical expenses that are accrued from serious operations, especially if they are emergency scenarios that occur for a person who is without health insurance. Even with health insurance, a simple surgery can cost an individual thousands of dollars. However, for those without health insurance, a simple surgery can lead a person into bankruptcy. Although unpaid medical bills disappear from your credit report after seven years due to the statute of limitations for credit monitoring, the debts you’ve accrued remain tied to you until they’re paid off.
Coping With Financial Stress
It can be extremely stressful to be tens of thousands of dollars in debt due to medical bills or your education. However, as overwhelming as it may feel to be in so much debt, the most important steps you can take are to manage your debt and not allow it to affect your mental health. Taking small steps toward financial stability is one of the best ways you can reduce your financial stress, as this will provide you with more control over your financial situation. Start by creating a manageable financial plan that will help you keep a budget and save money. Whether you reduce your utility bills or start a second job, a little bit of extra income will provide you with a better outlook when it comes to organizing your finances.
Some options for creating a financial plan include:
- Creating a payment plan with your creditor for outstanding credit accounts or other debt
- Trying to reduce your monthly utility bills to avoid extra fees
- Forming a budget to start building up your savings account
Although student loan debt isn’t something you can make go away by saving a few extra dollars each month, there are many ways to manage your monthly payments so they don’t seem so overwhelming. One option is to refinance your loan, which can save you thousands of dollars in interest depending on your credit and the deal you find. Another option is to simply communicate with your lender about your monthly payment; oftentimes, they are able to work out a reasonable income-based repayment plan that works within your budget.
Stress management can be difficult when it comes to finances, but by staying on top of your financial situation and maintaining positive thinking, you can keep your stress levels down and your spirits up. Ultimately, you are in charge of your life and what you do with your money, and by making the best decisions for your personal situation, you’ll be able to manage any obstacle that comes your way