Mon Feb 4, 2013, 2:00 am | 2 Comments
Depression due to variety of reasons is a byproduct of living in the Western World. Too many worries follow you and as a result the psychiatrists’ businesses are running at full swing. Unmanageable debt is one big reason the depression among folks is on the rise. If it prolongs, you would not be able to sleep or even eat.
You may not be aware of it at the time but many folks can cure their depression due to debt all by themselves. Start working on reducing your debt today. Don’t wait till tomorrow. Act now!
This blog and many others have some specific ways how to reduce and eventually eliminate debt. Read some of the articles here to manage your debt.
The biggest debt is short-term credit card debt (monthly) or payday loans (period varies). Credit card debt interest rate of 30% is not unheard of.
Payday loans can charge you anywhere from 400% to thousands of percent annually. That’s commonly known as the interest rate that floats in the stratosphere. If that point is reached, then you may not have another option but to declare bankruptcy.
A study was published by Lawrence Berger, a University of Wisconsin at Madison associate professor of social work.
He found that when the dollar amount of a person’s debt increases by 10 percent, depressive symptoms increase by 14 percent.
Say goodbye to your retirement if you are heavily in debt
The money you may want to save for retirement should very well go into reducing your debt and eventually eliminating it.
It used to be that you would pay off your house as you grow older. You would pay off credit cards when you hit peak earnings years, and when you moved into retirement you would do it mortgage-free and debt-free.
There was a time that what people thought of days in retirement would actually and in reality happen. That was nobody’s imagination. They expected it and they got it as simple as that.
However, that philosophy changed and it changed for the worse. The financial meltdown and housing crisis – two major reasons – were a big part of it. Unemployment was also at the top.
Many people imagined they had savings as equity in their homes. To get lower interest rate and get some cash in their hands, they refinanced, took out home-equity loans and spent recklessly thinking they would not see bad financial days as long as they lived.
Oh, boy! Were they wrong completely and to the point that many of them lost their homes.
Those were not just a few people but millions of them. They figured wrong and I think the so-called finance gurus had a big part in ruining ordinary people’s financial life. The CNBCs, Fox News, CNNs and all other media that would speak their employers’ mind took a big part in creating miseries in people’s lives.
The more they talked and loudly I might add, the more people listened and the more they got screwed as never before.
The young can take bad days relatively in stride
When you are young and you have debt, you have enough time to pay it off gradually but surely. So, even though everyone has been affected by the worst recession in recent memory, the young might be able to shrug it off.
But there is a lesson for the young as well. When you get to retirement age – and you will one day – make sure that you have not lived your financial life spending needlessly.
Make sure that you have enough in your retirement account to spend the rest of your life in relative comfort before you are taken six feet under or perhaps your body is burned to ashes (Notice that I didn’t use the word cremation.)
It’s true heavy debt leads to depression…
To get out of any other kind of depression, you go to a psychiatrist. To get out of depression due to debt, you don’t need psychiatrist. What you need is take action and start working on reducing your debt and eventually eliminate it.
Like I said before, there are ways to manage your debt. Life is too short to spend it in debt and therefore in depression. Life is too precious to live it in debt misery.
In a Nutshell
Make a decision with resolve to reduce your debt to a manageable level. Put it in action. Start working on it today. Don’t wait till tomorrow.
Make debt an abomination in your financial life. Look at it with eyes of disgust. I hope these are not too strong words. But this is how unnecessary debt should be looked at.