Studies confirm that being depressed because of debt can take a genuine toll on a person, which may lead to even more serious health problems. The study showed that as financial worries increase, so too does the likelihood of a person’s vulnerability to subsequent mental and physical ailments.*
Today’s sluggish economy, the ongoing fallout from the post-2008 recession and increasing levels of credit card- and student loan debt may all contribute to growing financial anxiety and debt depression. Any one of these factors is troubling enough, but consumers dealing with more than one or other factors such as concerns about being laid off or accruing medical bills may be feeling overwhelmed. This can lead to depression, and other physical and mental illnesses.
How can stressed borrowers effectively deal with debt depression? One way may be to create a plan to better empower borrowers by putting a plan in place to pay off debt.
Here are four steps to help stressed consumers get a handle on overwhelming debt.
Step 1: Assess the full debt
It may be tempting to avoid looking at the full scope of a situation when feeling overwhelmed, but it is especially important to determine the full amount that owed to all creditors. It’s also advisable to pull together a list of minimum payments, due dates and whether the status of the accounts.
Step 2: Create a realistic budget
A good budget is like a balance sheet. It reflects all cash coming in through jobs, part-time work and any other income sources as well as all monthly fixed expenditures. It also includes the average of fluctuating monthly costs such as groceries, trip to Big Box stores, etc. This accurate and comprehensive listing of all income and cash outlays helps create a zero-based budget – assigning each dollar to expenditures and savings.
But be advised: Being too rigid in budgeting may not be realistic and may lead to the borrower being more depressed because of debt. Don’t restrict yourself beyond comfort and allow some leeway for an occasional treat.
Step 3: Throw excess cash at the debt
If there is cash at the end of the month, apply it to the debt. Accelerating debt payoffs can help borrowers dealing with debt stress feel empowered because they will pay off debt faster.
Step 4: Reorganize the budget, if needed
If it’s clear that there’s no way to cover the monthly costs of all outstanding loans and credit cards, the borrower may need to tweak the budget in order to cover costs. There are 3 ways for borrowers to handle this, so they don’t become more depressed because of debt:
Earn more money.
The borrower can decide to bring in more money to deal with debt depression by asking for a raise, getting a part-time job or starting a home business in order to bring in more cash.
Get a debt-consolidation loan.
The borrower can also apply for a debt-consolidation loan in order to place all debt into a single loan with a once-a-month payment. This reduces the likelihood of missed payments and could reduce the total amount of monthly loan expenses.
When shopping for a debt consolidation loan, look for a reputable lender with consistent loan repayment plans. Zion Finance - Lend Up is an online lender offering unsecured loans ranging from $5000 - $500,000. An unsecured loan may be a good fit for stressed consumers as it allows them to borrow money without collateral.
DO YOU NEED A QUICK LOAN TODAY? WE CAN HELP YOU!
Do you need a quick loan today? we can help you with the loan you need.
Are you in any financial mess and you need quick funds to start your own business?
Do you need a loan for the settlement of your old debts? or to pay off your whole bills?
Do you have a low credit score and are finding it hard to obtain a loan from your bank?
We offer loan at an interest rate of 3% and with no credit check, we offer Personal loans, Business loans, debt consolidation loans, venture capital, business start-ups loans, education loans, home loans, mortgage loans, or loan for any reason. We offer loans within the amount of $5,000 to $20 million. Loans are approved just in 2 business days, and the funds will be deposited in your bank account the next day.
To apply for a loan, send an email to: zionloanfirm.ltd@aol.com
We give loans to borrowers world wide. We can lend you in any country in the world.
Today’s sluggish economy, the ongoing fallout from the post-2008 recession and increasing levels of credit card- and student loan debt may all contribute to growing financial anxiety and debt depression. Any one of these factors is troubling enough, but consumers dealing with more than one or other factors such as concerns about being laid off or accruing medical bills may be feeling overwhelmed. This can lead to depression, and other physical and mental illnesses.
How can stressed borrowers effectively deal with debt depression? One way may be to create a plan to better empower borrowers by putting a plan in place to pay off debt.
Step 1: Assess the full debt
It may be tempting to avoid looking at the full scope of a situation when feeling overwhelmed, but it is especially important to determine the full amount that owed to all creditors. It’s also advisable to pull together a list of minimum payments, due dates and whether the status of the accounts.
Step 2: Create a realistic budget
A good budget is like a balance sheet. It reflects all cash coming in through jobs, part-time work and any other income sources as well as all monthly fixed expenditures. It also includes the average of fluctuating monthly costs such as groceries, trip to Big Box stores, etc. This accurate and comprehensive listing of all income and cash outlays helps create a zero-based budget – assigning each dollar to expenditures and savings.
But be advised: Being too rigid in budgeting may not be realistic and may lead to the borrower being more depressed because of debt. Don’t restrict yourself beyond comfort and allow some leeway for an occasional treat.
Step 3: Throw excess cash at the debt
If there is cash at the end of the month, apply it to the debt. Accelerating debt payoffs can help borrowers dealing with debt stress feel empowered because they will pay off debt faster.
Step 4: Reorganize the budget, if needed
If it’s clear that there’s no way to cover the monthly costs of all outstanding loans and credit cards, the borrower may need to tweak the budget in order to cover costs. There are 3 ways for borrowers to handle this, so they don’t become more depressed because of debt:
Earn more money.
The borrower can decide to bring in more money to deal with debt depression by asking for a raise, getting a part-time job or starting a home business in order to bring in more cash.
Get a debt-consolidation loan.
The borrower can also apply for a debt-consolidation loan in order to place all debt into a single loan with a once-a-month payment. This reduces the likelihood of missed payments and could reduce the total amount of monthly loan expenses.
When shopping for a debt consolidation loan, look for a reputable lender with consistent loan repayment plans. Zion Finance - Lend Up is an online lender offering unsecured loans ranging from $5000 - $500,000. An unsecured loan may be a good fit for stressed consumers as it allows them to borrow money without collateral.
DO YOU NEED A QUICK LOAN TODAY? WE CAN HELP YOU!
Do you need a quick loan today? we can help you with the loan you need.
Are you in any financial mess and you need quick funds to start your own business?
Do you need a loan for the settlement of your old debts? or to pay off your whole bills?
Do you have a low credit score and are finding it hard to obtain a loan from your bank?
We offer loan at an interest rate of 3% and with no credit check, we offer Personal loans, Business loans, debt consolidation loans, venture capital, business start-ups loans, education loans, home loans, mortgage loans, or loan for any reason. We offer loans within the amount of $5,000 to $20 million. Loans are approved just in 2 business days, and the funds will be deposited in your bank account the next day.
To apply for a loan, send an email to: zionloanfirm.ltd@aol.com
We give loans to borrowers world wide. We can lend you in any country in the world.
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