Consumers that become debt free cited peace of mind as a resulting benefit they enjoy. Yet, your state of mind becomes important in your debt situation long before your debt is paid off. There is a well-documented relationship between the two: debt and your mental state. According to a Money and Mental Health survey, 49 percent of people that experience mental health issues also find themselves in debt while 25 percent of Americans admit that they worry about money all the time. For some, it is the credit card or personal loan repayments, while the younger generation finds themselves battling the repayment of increasing student loans. In the end, navigating their way out of debt can lead them to spiral, and in some cases panic. However, while proper management of finances and tools such as budgeting remain key to solving the age-old debt question, a clear mind can be just as powerful, and possibly the tool that kickstarts getting rid of debt.
Clarity Reduces Misplaced And Impulse Spending
Our state of mind and emotions play a large part in our spending habits, including impulse purchases. Many people can find themselves struggling with emotional spending triggers such as sadness or even the receipt of good news. Purchases like this can also throw a wrench into your debt repayment plan and sometimes throw it off track. By spending money intended for your debt repayment or using the extra money that could have helped you make more progress in your debt journey, you are indirectly sabotaging your debt plans.
Maintaining a clear mind means remembering your priorities and navigating events in your everyday life (and the emotions that come with it) with level-headedness. Too often we get caught up with impulse shopping on items that may appeal to us at that moment but do we really need it? Take a step back and consider whether it is money well spent and what it will be taking away from other priorities in your life. Are you able to pay cash or are you putting it on a credit card? If you do opt to fund impulse purchases with credit, there are also interest charges to contend with.
Loss Of Clarity Can Mean Loss Of Motivation
For many, the debt repayment journey can be a long and hard one. It requires sacrifices, commitment, and dedication. So it is not unusual for consumers to fumble or lose their motivation at some point on their way to becoming debt free. Having our minds clouded with negative thoughts can even lead to direr mental consequences such as depression. In fact, studies have indicated that debt levels can trigger stress in consumers while 29 percent of people with high debt stress levels experience severe anxiety, according to a study by the University of Nottingham. Luckily, there are small and simple steps you can take along the way to avoid and remedy this. Consider implementing a reward system at certain points of your debt repayment journey and visually track your progress up to this point. Seeing yourself make progress can act as a powerful motivator to keep going, especially if you see yourself overcoming preset hurdles such as debt checkpoints. For those looking to combat stress or anxiety, implementing the regular practice of mindfulness techniques in the home can help relieve tension for every family member.
Avoid Tunnel Vision By Having A Clear Mind
Finally, another reason that a clear mind is vital in our bid to clear our debt is that it allows us to see and truly consider all other options. Too often we can develop a repayment strategy in the beginning and we tend to zero in on that throughout. However, the reality is that our debt repayment methods and tools may need to be adjusted throughout; in fact, it is not unusual for a debt repayment plan to be evaluated a few times. While debt refinancing or consolidation may be a good idea in the beginning, they aren’t anymore. Being able to see all the options available to you means you are able to make the best decisions possible on the way to becoming debt free, and possibly do so earlier.
In today’s world, the repayment of debt has become a regular part of many American’s lives and commitment schedule. While much has been said about the effect that the debt journey can have on our mental state, not a lot has been mentioned about the reverse connection; the effect of our state of mind has on our debt. While money and savvy techniques remain handy in achieving the goal of a debt-free life, our minds continue to be the most powerful tool we have in our quest to be free. It is what drives our commitment, our strategies and our continuing motivation. As a result, protecting and nurturing it should be at the top of our list if we wish to achieve our debt goals.