Being in significant debt can feel debilitating. Many people who are struggling financially may feel that they are in a vicious cycle because their expenses amount to more than the income that they can earn. Many people in this situation decide to ignore the problem and instead keep using credit cards. Unfortunately, they always have to face up to the debt that they acquired eventually.
Dealing with debt effectively can be achieved in many different ways. Many people decide to file for bankruptcy, while others are successful through a combination of debt consolidation strategies and discipline. Studies have shown that when people are relieved from their debts, they experience positive mental effects.
The positive impact that debt relief has on mental health
A study conducted between 2015 and 2017 found that those who have their debts alleviated experience less anxiety and their cognitive functioning improves. In addition, the tests found that the former debtors could actually make better financial decisions after their debts were relieved.
This suggests that being in debt impairs our ability to make objective and sensible financial decisions, perhaps because of the anxiety surrounding debt and how it distorts the mental perception of money.
It also reaffirms the importance of seeking debt relief early on in financial hardships. Doing so can help debtors to avoid being trapped in a vicious cycle and can help them avoid dealing with anxiety issues.
If you are struggling with debt, you should consider all of the debt relief options available to you. Filing for bankruptcy can be a great option for people in a variety of financial situations.