Life always doesn’t go how we plan it to and we face certain situations in which we have never expected. Going through a financial crisis is one of them. Having a debt can feel like a burden and the weight keeps adding on with the accumulating interest rates, regular calls from the lenders, etc, it leads to stress and anxiety. It can take a serious toll on your mental health and if the problem is not addressed then it will further increase the burden on you. 

Usually, a borrower faces stress related to debt when he is going through some financial hardships like medical emergencies, job loss, or unexpected expenses. Unable to repay the loan on time, high interest rates, and negative impact on credit score contribute to debt stress. However, if addressed properly you can find relief and manage your debt sustainably and healthily. 



The first thing you should start with is recognizing and acknowledging your financial situation. The more you try to avoid the problem the more difficult it gets to handle. Be calm and start by creating a list of your debts and how you landed in this situation. 


Budgeting may feel difficult when you are already in a tough situation, but planning a budget is crucial if you want to get out of your situation. Essentially budgeting is planning how and for what you want to spend your money on. It will give you a sense of clarity and direction by providing you with a clear view of your non-negotiable necessities like food, medical expenses, housing, rent, clothing, etc. Budgeting will ensure that you are not spending money on things that are not necessary and you will be able to keep track of the inflow and outflow of money. 


When you have multiple debts, it can feel overwhelming as to how you can repay them. But if you list out your debts and sort them out based on your priorities, it will give you a sense of direction. It’s better to start by paying the high-interest debt first. It will ensure that the accumulating interest rates don’t further damage your financial situation. You should be able to repay at least the minimum amount of your debt, otherwise, it will damage your credit score. 

 Another way is to go in ascending order, paying the minimum amount of debt first and so on. It will give you a sense of relief to see some progress. 


By supplementing your income, you can allocate more funds towards repaying your debt without cutting down on your non-negotiable expenses. Creating an emergency fund will give a sense of relief for future uncertainties. 

You can supplement your income by doing some side hustle, freelancing, or selling items that are no longer required for you. 


Sometimes we end up making some purchases that may not feel significant at that time, but during times of financial crisis, we often end up regretting spending money on that. 

You can do this by creating spending categories, eliminating impulse purchases, and only spending on what matters the most to fulfill your needs. By avoiding unnecessary expenses, you will be able to allocate more money towards the payment of your loan. 


Do not be afraid to ask for help. You can consider seeking the help of credit counselors and professionals in this field to help you and guide you in your difficulty. They are equipped with industry knowledge and can provide you with valuable advice. Professionals will also analyze your financial situation and help you create a budget and advice on which debt to pay off first. 


Before your debts become a huge burden and go out of your repaying capacity, try to communicate with your lenders about your difficulty and explain your situation. The earlier you approach them the better it is. 

You can ask them about reducing your monthly payment, lowering your interest rates, and some credit card hardship programs. Most of the time they are willing to offer you a solution and help you avoid missing payment. Communicating at an earlier stage will also be seen as a responsible financial behavior by your lenders and they will also cooperate with you. 


Dealing with debt-related stress can throw you off your mental peace and it can be a challenging process. But it’s essential to stay consistent and have patience. Take small steps at a time and celebrate the small progress you are making.  Even on days when you feel you are not making any progress try to maintain a positive attitude and with determination, you can overcome your problems and reach financial stability. 


You can simplify your debts by considering debt consolidation. By doing this you can manage your debts in a better way and it also reduces the interest rates and provides you with a better repayment plan.


Managing debt and going through a financial crisis can be a difficult phase in anyone’s life but don’t neglect your mental health. Acknowledge your emotions rather than try to run away from them. Speak to your family and friends and ask them about emotional support. Stress can affect every aspect of your life, but with self-care and support can you reach your financial goals.


In conclusion, managing debt stress can be challenging but by acknowledging the reality of your situation you can plan a budget and set priorities. Supplement your income, cut unnecessary expenses, and seek professional help. Try communicating with your lender at an early stage and considering debt consolidation.

Patience and consistency are the key to the process

Keep self-care your priority and focus on your mental well-being. By incorporating these things in your debt payment journey, you can get back on track and build a financially stable future for yourself. 

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