Debts can be the solution during financial emergencies, but they can also become problems themselves when it’s time to pay them up. And it doesn’t help that financial problems also spill over to other aspects of our lives, including one’s wellness. Here are the ways being mired in debt can cause health problems.

Mental health

According to research, people who experience financial stress are more likely to have insufficient or poor sleep quality, which can lead to unfavourable eating habits. One of the reasons for that financial stress is a sense of helplessness from being unable to pay back the debts they have taken on. They also have the fear that they may get hostile calls from debt collectors throughout the day. These will negatively impact their ability to concentrate, increase their risk of developing depression, and worsen their existing severe mental health conditions.

Physical health

Higher levels of stress resulting from being excessively focused on the increasing amount of debt have been linked with a higher risk of physical health complications, including hypertension and digestive disorders. When under stress, people frequently turn to transient activities like binge drinking and drinking huge amounts of alcohol, which may aggravate their physical problems.

It also doesn’t help that some struggling borrowers choose to move to a cheaper but less ideal rental and reduce their purchases of essential needs like monthly groceries. There are even those who go as far as scrimping on nutritious and fulfilling meals just to pay debts, which might lead to hunger and worsen already high levels of stress. Sadly, the cut-off effect can then have an impact on physical health.

The effects of these deficiencies will make it difficult to think clearly when working, especially when managing finances, which should require more intensive attention and calculation. If nutritional deficiencies continue, the effect will worsen problems in the stomach and digestion, which often end in problems with GERD. Moreover, an unhealthy lifestyle, such as drinking too much alcohol, further worsens this disease. Lack of nutrition also exacerbates unstable hormones, which will make it very difficult to control emotions and most likely lead to hypertension.

Relationship strained

Financial infidelity or debt betrayal are common causes of divorce in Singapore. When one partner just lost their job, this might be easy because the pair can plan and manage their spending patterns while setting financial goals. However, one partner engaging in secretive spending and gaining access by taking out loans without the spouse’s knowledge is frequently a relationship breaker. 

When the bills start arriving and the spouse who has been an unwise spender has no way to pay them back, mistrust and a communication breakdown may develop in the marriage, ultimately straining it to the breaking point. Irreconcilable conflicts may arise and, in the worst-case scenario, push the married couple into legal action if these breaches of trust are not addressed right away.

The worst thing when this happens is that the marital problems contribute to the mental and physical health problems brought about by financial reasons. Thus, much like how borrowers should be open with their private money lenders and spend their loans wisely, it’s important for both spouses to not just have good communication but also good financial management.

Conclusion

It’s not a surprise that financial health affects your physical and mental health. Everyone needs to form wise habits to correctly handle loans from a licensed money lender in Chinatown or anywhere else and the obligations that come with them.

That means they need to be able to set priorities, be cautious in avoiding unnecessary spending that leads to debt, be skilled in creating and communicating household budgets, be ready to plan and carry emergency cash for protection, and consistently save and invest.

Also, it is important to always keep in mind that managing debt strategically not only involves handling finances but also protecting one’s health and quality of life. Learn to be on top of your financial worries and ambitions, and create a framework that will help you manage your finances intelligently and healthily.