Debt can be a source of immense stress and depression, leading to rising suicide rates and relationship instability. It can come suddenly due to a health crisis, unemployment, or a natural disaster, or it can accumulate slowly over time. No matter the cause, it's important to understand how financial health can affect mental health and take steps to regain control of your finances. The first step is to make a list of all your debts on the Debt Reduction Plan form.
Note the low balance amounts and high APR balances. Then decide which balance makes the most sense to settle first and start paying off that balance. Make sure you understand who owns the debt so that payments go to the right agency. The National Foundation for Credit Counseling (NFCC) is a great resource for those struggling with debt.
They provide advice on how to change borrowing habits and look for ways out of debt. Debt settlement companies may also be an option, but they require you to stop paying creditors and place money in an account they control. It's important to be aware of how much debt you have and take steps to reduce spending. This will help you determine how much money you have left each month to pay off debt.
The snowball approach is a popular method for tackling debt: start by paying off the lowest balance first, then move on to the next loan. Families suffering from debt may not be able to invest as much money in retirement or experience delays in traditional milestones such as starting a family or buying a home. Fortunately, there are resources available to help cope with financial stress and manage money better. Seeking help is the best way to start taking steps towards overcoming mental health and debt challenges.