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What are the effects of financial stress?

Financial stress can affect people's physical and mental health. If you are experiencing financial stress, you may also be suffering from some of the following effects that often accompany financial worries:

Weight gain or loss

Weight gain or loss is a common side-effect of stress. Whatever stressful situation a person finds themselves in, their usual consumption patterns are often disrupted, leading to weight gain or loss.

When eating habits are disrupted, appetites change, and people forget to eat at all, or overeat to cope with stress. This phenomenon is often symptomatic of the fact that if a person feels they have lost control of part of their life, they can take control of their eating habits.

Depression

Unfortunately, money problems are often accompanied by mental health problems, one of the most common of which is depression. When someone is under financial stress from things like debt, loan repayments or their insurance, they inevitably start to feel the pressure.

People often start to feel more upset and depressed in general, but they can also feel hopeless and find it hard to make decisions or concentrate.

Relationship problems

Arguments about money are common in many marriages and relationships. When money problems are present in relationships, they cause financial stress between two people, and it's no longer a concentrated problem, but a shared burden. This often only leads to anger, resentment and relationship breakdowns.

Social withdrawal

If you're under financial stress, you risk isolating yourself from your friends, family and loved ones. There are many reasons for this: some people are ashamed of their financial situation, others simply feel they shouldn't be spending money and so choose not to socialize.

This often leads to mental health problems, as you withdraw into yourself and have no one to talk to about your feelings and anxieties. It also means you don't have time for other things, and end up thinking only about your debts and stress.

Tips for managing debt and stress

Don't deny your indebtedness

The worst thing you can do when it comes to debt, loan repayments and financial stress in general is to ignore your problem. No matter how much you ignore it, it won't go away. So it's essential that you accept the situation you find yourself in. Once you've acknowledged your debt, you can start thinking about different solutions to your problem.

What's more, accepting that you're in debt and have financial problems will help you take responsibility for yourself. From there, you'll be able to explore why you got into debt in the first place, and what you can do in the future to reduce the risk of it happening again.

Budget

Once you've accepted that you have debt problems, you need to start working on how to deal with the problem. While applying for a loan may temporarily prevent your credit rating from collapsing completely, it's a short-term solution.

One of the simplest and most effective ways to avoid overspending and getting back into debt is to draw up a budget. All you need to do is draw up a list of your recurring monthly expenses, analyze your spending habits and make a few lifestyle adjustments. Budgeting will help you visualize your financial situation and save money on a daily basis.

Positive mental attitude

It's much easier said than done, but if you're able to adopt a positive mental attitude, it will help you cope with debt and financial stress. If you take a moment to reflect on the things and people that mean the most to you in your life, you'll realize that most of them are more valuable to you than money.

Think about those things that are important to you when you feel like you're drifting into a place of negativity and it will give you a better idea of your situation. There's always a light at the end of the tunnel.

Keep busy

Thinking about your debt all day, every day, is extremely damaging to your mental health. It is therefore advisable to stay active and find hobbies to distract you. Keeping busy doesn't mean ignoring your debts altogether, but allows you to think about something other than your debts.

Physical activity is a great way to relieve stress, as exercise releases endorphins that make you happier.

Consult a licensed insolvency trustee

If you feel that the stress of your debts and financial problems is becoming too much for you to handle alone, that's normal. If you don't feel comfortable asking for help or talking about your financial situation with friends and family, you can seek the advice of a licensed insolvency trustee (LIA ).

A trustee in bankruptcy will conduct an in-depth analysis of your financial situation to help you find the debt management solution best suited to your needs. He or she accompanies you from A to Z throughout the debt relief process, so you don't have to face your financial difficulties alone.

Get a free, confidential consultation

Debt solutions

Consumer proposal

A consumer proposal is a solution that can only be administered by a licensed insolvency trustee. It is an agreement between you and your creditors to pay part of your debt or to extend the deadline for payment of your debt.

Personal bankruptcy

Personal bankruptcy is a solution for people whose situation is unlikely to change and who have little or no ability to repay their debts. The process of declaring bankruptcy can vary from person to person and depends on the amount of debt you owe.

It consists in wiping out all your debts by relinquishing your assets. Personal bankruptcy can be filed by the individual or by a creditor. You often have to give up your personal assets, such as your home and property, to clear your debts.

Debt consolidation

Debt consolidation involves combining your debts into a single loan to simplify your payments. If you can afford to repay the new loan, this could be the best option for you.

Debt consolidation is used when you have several loans, such as credit card loans and other personal loans, because it allows a more rational approach to repaying your debts.

Need help getting out of debt?

If you need help eliminating your debts, it's best to seek professional help. Groupe Serpone can analyze your needs and financial situation to determine the debt management option best suited to your personal situation.

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