As the unemployment rate in the United States hit an all-time high of 14.70% in April 2020 and the country is barreling towards another recession, adding personal monetary problems to the equation is a recipe for extreme financial stress. Financial stress, if left untreated, is incredibly detrimental to your mental and physical health. It’s essential to take control of your situation to alleviate the pressure that’s burdening you. Debt can be a significant stressor, but thankfully, it’s a problem that can be handled by following these proven strategies for managing debt stress.
Create a plan to tackle your debt
Make a list of all the amounts you owe and who you owe them to. Go through this list and create individual plans to tackle each form of debt that you listed down. Your financial problems can feel overwhelming, but having it written down will give you the motivation to be able to tackle each debt strategically.
What will help you further is if you prioritize your debts by order of importance? The ones with the highest interest rates will be the ones you will focus on first by maximizing your payments. On the other hand, loans with lower interest rates can be paid with the minimum amounts for each one. You should also note down solutions to come up with extra money for that particular payment. For example, a mortgage refinancing can help you pay off your mortgage debt quicker.
Discover alternative sources of income
There are plenty of ways to make cash on the side to cover your debt repayments. You can start by selling all the old belongings that you rarely use since decluttering can also bring you peace of mind. If you have a specialized skill that you’re confident to teach, advertise your services, and you can make money from that. Take note that this method may result in further stress and pressure on you, so only do this if you’re able to.
Engage in self-care
Don’t let your mental and physical health fall by the wayside. Take care of yourself and take a break every once in a while so that you’re better equipped to deal with your financial problems when you get back. Self-care can be as simple as taking a short walk outside in the morning or going on a digital cleanse on the weekends.
Find healthy ways to cope with stress
Retail therapy is a common way that people deal with financial stress, but unfortunately, it does nothing but sends them further into the black hole of debt. If this is a method you often employ to handle your financial stress, it’s time you take a good look at your spending habits and make significant changes. That is important as you’ll be able to identify the areas where you need to put in the most work, so rather than going shopping at the first sign of trouble, you can find more healthy and productive ways to deal with mental and physical pressure.
Seek professional help
If you aren’t capable of handling your financial problems on your own, get a second opinion from an experienced professional. They’ll be able to evaluate your situation and recommend effective strategies to manage your debt.
Keep debt stress at bay and retake control of your life with these simple yet effective strategies.