The Effect Debt Has on Mental Health

It may be tempting to put big purchases on a credit card or sign a contract for financing for something you can’t afford in cash, but experts say this could add to some health challenges.

In general, scientists are finding that dealing with the burden of ongoing debt can actually harm people in terms of both their mental and physical well-being. That’s something to consider when you’re trying to tackle a new expense and may be tempted to just “put it on the tab.”

Debts and Stress

Taking on debt requires some kind of plan to eventually pay the money back. If the borrower doesn’t have such a plan or runs into issues later, that can dramatically impact their finances.

Most people know this intuitively, so after signing the contract, they worry about repayment. That, some researchers say, can raise stress levels by 11.7%, according to established studies. And carrying that stress leads to other problems.

Debt Stress and Vital Signs

All things equal, the additional stress can raise a person’s average blood pressure and lead to symptoms like headaches and muscle pains (see this resource from WebMD for more.)

Some of these symptoms are signs that your body is wrestling with toxic stress’s impact on your life. One of the major pressures is financial pressure, and one of the significant factors in most people’s financial problems is debt.

Ongoing Anxiety

That stress can also feed into a vicious cycle that illustrates how humans have evolved over millennia.

Experts talk about the “fight or flight” mechanism that was helpful when humans had to run from predators or deal with dangerous situations to survive.

But nowadays, those kinds of fight or flight mechanisms can be unnecessarily triggered by long-term things like debt. That mismatch between a legitimate physically present danger and a looming worry on the horizon can contribute to those health problems we talked about above. People who have experienced this can talk about how the body reacts in ways you might not expect. It takes a certain self-analysis to identify and resolve the trigger or stressor.

Here’s an alternative to taking on credit card debt — use an existing annuity to get capital you can use to fund your household budget.

For anyone holding an annuity, whether it’s something you paid into or something presented as a court settlement, you have the option to sell that financial asset for upfront cash. Talk to District Settlement Finance about getting a lump sum for annuity payments to get the liquidity you need to pay off debt and live with more financial freedom. As a top buyer of annuities, we will walk you through the process and help you each step of the way. You’ll benefit from a more informed transaction and a better understanding of what you’re getting and what you’re giving away. Our experience helps us serve clients who want the financial freedom that is theirs by right. It’s what we do!