According to a health psychologist at Stanford University, debt is among the few stress in your life that never go away. Kelly McGonigal, says our body is designed to cope up with stresses like a car accident, a death of a beloved person or a divorce. After a certain time, the person is able to overcome its issue. However, in terms of debt, the stress remains constant. The idea of owning money can take a toll on your mental and physical health.
Of course, there are certain smart strategies that will help reduce your debt stress. Follow these suggestions and you will be able to live a debt-free life in no time.
How to Reduce Debt Stress
Credit Creates a False Sense of freedom
You need to understand that credit tends to create a false sense of freedom. People worried regarding their debts take the option of increasing credit limit as a way out. Sometimes they even go out and get a new credit card. The idea that they have more to spend is short-lived. In reality, they are simply taking on more debt.
A study published in Experimental Social Physiological Journal stated that people tend to shop expensive things when they ego or self-worth is threated. Despite the fact that they don’t have any money to spend, they do so anyway. This means that they are building on more debt. It is time that they exercise some self-control. They need to understand that things like family, friends, and relationships are more important than buying high-end brands.
Get into a Trust Deed
Trust deed is another effective way to reduce your debt stress. It is mostly practiced in Scotland. If you are wondering what is a trust deed in Scotland? It is a smart way via which people struggling with debt can repay their debts. It is a formal debt agreement that takes place between the creditor and you. Once the deal is signed you are to pay the credit over a certain number of years, in most cases its four years. You will be required to pay a set amount every month for these 4 years. It is an effective alternative to bankruptcy.