Overcoming the psychological impact of being over-indebted

10 May 2019

Being over-indebted has a negative impact on your personal finances. It reduces your credit score, absorbs your disposable income, and prevents you from building your savings.

Added to this, it also has an impact on your emotional well-being. Being over-indebted can contribute to a string of psychological issues, such as anxiety, loneliness, and depression.

It is important to look at how these issues manifest as a result of debt, as well as what you can do to get back to your usual, healthy self.

Don’t be paralyzed by anxiety
Once the reality of how over-indebted you are sets in, you may feel yourself falling into a panic. It can be overwhelming to watch your debit orders bounce back, knowing that yet another creditor will come knocking on your door.

But don’t let this anxiety paralyze you. It is important to reach out for help before your creditors start taking legal action against you. At DebtBusters, our financial assessors are ready to hear your story and offer you the best solution based on your unique financial needs.

Don’t carry the burden alone
If you’re struggling with your debt, the last thing you want to do is advertise this to the world. Perhaps you don’t want your family to worry about finances, or maybe you’re embarrassed to tell your friends. It can therefore become an incredibly lonely journey.

But you don’t have to carry this burden alone. Your family and friends are there to support you during difficult times and being over-indebted is nothing to be ashamed of – thousands of South Africans struggle with the same challenge every day.

Speak up, talk to those around you, and ask them for advice. But don’t borrow money from them. The last thing you need is more debt. Rather opt for debt counselling, which will reduce your monthly debt payments and ensure your creditors will stop calling you.

Don’t take depression lightly
When you’re struggling with your debt, you may feel more hopeless than you’ve ever felt before. It may feel as though a weight has landed on your shoulders, giving you a heavy heart and sapping the energy from you.

Depression must not be taken lightly. If ignored, it can completely consume you and eventually prevent you from getting out of bed. If you realise you may be depressed, immediately reach out to your loved ones or a professional for help.

At DebtBusters we can further assist you by showing you that there is a way to manage your debt. Being over-indebted is not the end of the road for you. We can help you find a way forward so that you can leave the weight you’re carrying in the past where it belongs.

Get in touch with one of our financial advisers today for a free debt assessment.