7 in 10 Americans have shed tears over the state of their finances, according to CNBC. Mounting debt, stress, and rising living costs have all resulted in the nation borrowing a record $4 trillion. However, this level of borrowing is having a negative impact on the mental health of consumers, with many saying their financial responsibilities and budgets are making them unhappy and dragging them down. But you’ll be pleased to know that there are ways to overcome these emotions and improve your monetary situation.
Prioritize your debts
A recent study revealed that men and women have different debts that are impacting their moods. Men say that student loan debt, credit card debt, and car finance debt are the three debts that have the most negative impact on their emotions. On the other hand, women say that housing costs, including mortgage payments and rent, and personal loans have more of an effect on the way they feel. In order to feel better about your finances, you should take the time to prioritize those that mean the most to you and look into refinancing student loans or a mortgage if you need to. By ensuring that you have a plan in place to pay back the ones that get you down the most, your mood and overall happiness will start to improve and you’ll approach your other debts with a more positive outlook.
Don’t let bad credit get you down
13% of people say that their credit score has resulted in them crying. A poor credit score can have a significant impact on individuals as it can prevent them from qualifying for additional financial products, such as a credit card, mortgage, or even a savings account. But even if you have got a poor credit score, there’s no need to miss out as Crediful’s list of second chance bank accounts provides the opportunity to take out a bank account that doesn’t require a ChexSystems check. This means there is no need to spend up to 5 years worrying about not being able to get a bank account and you can start to repair your finances faster.
Plan for retirement
Putting money to one side for retirement when you’ve got debts to pay off may sound counterproductive, but research shows that individuals with a retirement pot are generally happier than those without. A report from the U.S. Federal Reserve found that 42% of 18 to 29-year-olds, 26% of 30 to 44-year-olds, 17% of 45 to 59-year-olds, and 13% of those over the age of 60 have no retirement savings. To be happier, you should start saving what you can towards your retirement now. Even if it’s just $10 per week, you’ll feel content and more confident about your financial future by having some cash set aside for your later years.
Multiple factors have resulted in the general public being emotionally impacted by the condition of their finances. However, rather than let your money woes get you down, you should actively seek out ways that will improve both your financial situation and your mental health.