Connecting The Dots Between Debt Relief and Mental Health

^{By Bromwich+Smith Staff | 532 words | Reading Time: 2 minutes and 39 seconds | Date: 2023/09/26}

As Canadians, we often don't openly talk about our financial struggles. However, the truth is that a significant number of us are facing overwhelming debt. For the 6th consecutive year, Canadians have expressed that money is a major source of stress. More than half have reported to struggling financially, with 36% experiencing mental health struggles brought on by financial difficulties. Nearly half of all Canadians reported loosing sleep due to finances, having less disposable income and being concerned about major purchases.

The Link Between Debt and Mental Health

The relationship between debt and mental health runs deep. Financial troubles can have a profound impact on your mental well-being, and conversely, your mental state can influence how you manage your finances.

1.     Stress and Anxiety: The stress of unpaid bills, mounting credit card balances, and the constant pressure to make ends meet can lead to constant stress and anxiety. These feelings can affect your sleep, work, and personal life. You may find a strain in relationships both at work, and at home.

2.     Depression: Living with the weight of debt can lead to feelings of hopelessness and sadness, which can develop into clinical depression over time. You may feel pressure, or guilt. It is important to know that debt is not your fault, many Canadians struggle due to unforeseen circumstances. You do not have to be alone with your debt.

3.     Self-Worth and Stigma: We understand there is a heavy stigma surrounding debt which can wear on your self-esteem. Many people feel shame or guilt for their financial situation, which can further aggravate mental health issues.

4.     Decision-Making: The stress of debt can impair your ability to make rational financial decisions. People often resort to impulsive spending or avoid dealing with their financial problems altogether. You may consider lenders with high interest rates to temporarily reduce your financial stress. In the big picture, these rates will ultimately be overwhelming and you will quickly fall back into more debt than you were in before.

5.     Isolation: The fear of judgment or shame can lead to social isolation. Individuals may withdraw from friends and family, further worsening their mental health. This is why it is so important to break free from this and normalize the conversation around debt. Chances are you know someone who is silently struggling, and your willingness to reach out and start the conversation could turn things around for them.

Debt can be a heavy burden to bear, and its impact on mental health should not be underestimated. Your mental health is just as important as your financial health, and by talking about debt we can remove the stigma, and make it easier for others to reach out for support.

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Bromwich+Smith is here to support you every step of the way on your journey, and we know that there may be others in your life who could benefit from a free, confidential consultation with Bromwich+Smith's Debt Relief Specialists. Please consider leaving our team a Google Review and sharing your experience or referring your loved ones for a no obligation consultation by calling 1.855.884.9243, or request a call back at contact us page.  There's hope for a brighter financial future, and it starts with you.