A Guide to Battling Debt & The Mental Health Troubles It Causes

A Guide to Battling Debt & The Mental Health Troubles It Causes

Anyone who is paying or has paid a six-figure education loan debt to support college education understands its toll on mental stability. It isn’t easy to get up every morning for work, knowing that more than half of the net salary will go toward your student loan repayment. And it’s not usually the principal amount that causes the mental turbulence—it’s the years of accrued interest often due to deferment, forbearance, and interest-only payments.

Though ELFI student loan refinancing is an excellent solution for lowering interest rates and choosing flexible term periods,most people aren’t aware of how refinancing can improve their mental and financial stability. And the depression can make you feel like you’re in this all alone—but you’re not. According to a 2018 report, over 44 million Americans shoulder an accumulated student loan debt of $1.5 trillion.

Here are some more statistics that reveal the detrimental effects of student loan debt on your mental health.

  • Every 1 in 10 borrowers say that they’re most worried about their student loans.
  • Sixty-five percent of people struggle with sleeping because of student loans.
  • Student loans related stress causes symptoms of anxiety in 67 percent of borrowers, such as nausea, headaches, increased heartbeat, tensed muscles, fatigue, and more.
  • Borrowers with a student loan debt of more than $50,000were observed to have lower overall wellbeing. In the Gallup survey, wellbeing was determined based on five factors: motivational factor, social factor, financial factor, community factor, and physical factor.
  • People with unsecured debt have three times moresusceptible to developing depression and anxiety.
  • Middle-class student loan borrowers exhibited higher levels of stress and depression, because of two significant factors: 1) They often don’t have financial support from their parents in paying off their student loans, 2) Because of a poor credit score or debt-to-income ratio, they typically don’t qualify for federal assistance.

A Guide to Battling Debt & The Mental Health Troubles It Causes

These figures show that you’re not alone. Millions of borrowers are fighting the same battle as yours every day. Their mental health is drastically affected because of the stress to repay the loan within the term period and the accruing income expense—no wonder this pressing issue has been labeled as a crisis.

Before you move on to the ways of coping with debt while keeping your mental health in good shape, watch what Natalie Abrams had to say about thestudent loan debt crisis.

How to Cope with Debt and the Mental Health Problems It Causes

Student loan debt can often take a dark turn, and it may feel like you’ll remain stuck in it forever. But that’s not the reality. With therapy, supportive peers, and professional loan advice, you can turn the situation around. Here are some healthy ways to deal with debt-related stress and student loan debt itself.

Seek Help

A Guide to Battling Debt & The Mental Health Troubles It Causes

Feelings of anxiety, stress, and depression can force you to believe that you’re alone in this battle. But you need to understand that there are countless people around you struggling with mental health conditions due to student loan debt. It’s critical for your mental health recoverythat you realize you’re not alone, that you can reach out for help. Whether it’s a family member, a friend, a therapist, or a personal loan advisor, open up to them about your financial problems. They may not be able to offer you monetary support, but their emotional support will keep you going and encouraged.

Keeping your financial problems to yourself will only make the situation worse for you.

Don’t Curse Yourself for Your Financial Condition.

You’re doing well. Sure, student loan debt may be wreaking havoc on your mental peace, but it did help you graduate from your dream college. Right? It wasn’t a wrong decision—you did it for a better career and future. You need to be kind to yourself. Maybe, you’re too exhausted because you’re thinking of getting rid of your student loan all the time and working day in and day out to earn money. You need to find healthy ways to pay off your student loan debt that won’t burn you out.

If you’re overworking yourself just so you could make extra payments each month and pay off your student loan early, you’re not managing debt right. You need to find the right balance between enjoying your life and paying off your debt over a scheduled period. Now that doesn’t mean you can go around spending on necessary things. Instead, reward yourself after each payment or any time you feel drained. Treat yourself with good food, go out on lunch with a loved one, or buy something affordable that you love.

Negotiate With Your Lender

A Guide to Battling Debt & The Mental Health Troubles It Causes

If you seem to be struggling with making monthly payments to repay your student debt, consider negotiating with your lender. Be mindful that your lender may not have enough time to deal with each customer, so keep your figures noted down on a paper before making the call. Explain the amount you earn every month and the amount you’re left with after paying for your bills, utilities, rent, grocery, and other necessary expenses. Requestyour lenderto lower the interest rates on your student loan or extend the payment term. Negotiate reasonably and politely to increase your chances of success.

Refinance Your Student Loans Debt

Student loan refinancing is a far more convenient and straightforward option than negotiation. ELFI (Education Loan Finance)offers refinancing services for both private and federal student loans to undergraduates, graduates, and parents of college-going students. Education loan refinancing will help reduce your debt-related stress significantly. It allows borrowers to replace their existing student loans with a secure and more manageable refinancing plan at incredibly lower interest rates. You can also pick a flexible and extended-term period to repay your loan without the stress of deadlines looming over your head.

Furthermore, if you have taken loans from several private lenders or have a combination of federal and student loans, managing them could add to your anxiety and frustration. Refinancing will consolidate all your loans into one simple payment that to one lender.

You can also pick whether you want to go with a variable or fixed interest rates. With this much flexibility, you’ll have a better sense of control over your financial situation, which will improve your mental health.

Though there are countless financial and emotional benefits of student loan refinancing, you can only profit from it if you meet the qualification criteria. But don’t worry, the requirements aren’t that tough. Here’s everything else you should know about student loan refinancing.

Want more advice on dealing with student loan debt while maintaining your mental health? Reach out to the personal loan advisors at ELFI (Education Loan Finance).