Bad debt can lead to depression

For most South Africans, living within our means often includes juggling a certain amount of manageable debt. Whether it be a mortgage, a new car or paying off a once in a lifetime holiday, there are all sorts of ways we create a “manageable” amount of debt, but what happens when it becomes too much to bear?

Along with eating into your income, paying high-interest rates and high monthly instalments, an unmanageable level of bad debt can lead to depression. More often than not, the psychological effects of struggling with debt are overlooked or treated as something to get over, but your mental state can affect your financial situation. For example, a common symptom of depression is the inability to act responsibly or the lack of mental energy to act at all. Bad debt can lead to depression, which leads to irresponsible behaviour, which leads to more debt which worsens your state of depression. It’s a vicious cycle.

A depressive mindset also goes beyond feeling trapped by debt. Having more debt than you can manage also means that you may not have the funds to cover your essentials. From rent to electricity, food, healthcare and childcare responsibilities – the ongoing list of what you can no longer afford will contribute to depression.

One of the lasting lessons we all learned from Covid-19 is that life can turn in an instant. Very few South Africans were financially secure enough to easily weather the storm of job loss and pay cuts, with the majority suffering in more ways than one. A result of suddenly needing to get by on substantially less than before meant that most consumers turned to credit cards, retail accounts and other avenues of credit to make ends meet. Whether your mounting debt was Covid-19 related, the result of reckless spending or unexpected bills, the outcome is the same – what started as manageable has now become bad debt.

If you have mounting debt that is causing mental and emotional distress, you don’t have to suffer alone. At Debtco Group, we can help you get a handle on your debt by liaising with your creditors and restructuring your instalments to a more manageable amount, giving you the financial freedom to take care of your needs. For more information regarding our debt management services, contact our team today.