Debt is a part of everyday life for many Singaporeans. While it isn’t encouraged, it also isn’t out-of-the-ordinary, especially when trying to achieve significant life goals. However, while loans may offer temporary relief, they can also take a toll on a borrower’s well-being, especially when juggling multiple loans.
The Weight of Debt
One of the consequences of having multiple loans is financial stress. It traps you in a vicious cycle of debt, repayments, and fear of missing due dates because of the late fines. It manifests in:
- Constant Anxiety: As a borrower dealing with multiple loans, it’s sometimes hard to keep track of due dates. The nagging feeling of missing a repayment can kick anxiety into high gear.
- Sleepless Nights: Other times, managing multiple debts may deprive you of sleep as you lay in bed wondering how to meet your repayment deadlines.
- Social Isolation: While debt isn’t a bad thing, its notoriety can make a borrower feel ashamed, especially if they’re neck-deep in debt. This can cause borrowers to withdraw from society and isolate themselves.
All of these can affect your way of life and social interactions. A loan from a money lender or bank isn’t that hard to deal with. However, borrowers with multiple loans must learn how to properly manage their debt and mental health.
5 Ways to Manage Well-Being Despite Multiple Loans
All of that said, taking care of your mental health doesn’t have to cost you an arm and a leg. We have listed a few simple ways borrowers with multiple debts can do this:
1. Shamelessly Track Your Spending
If you’re not one to keep track of your spending, this can be a game-changer. Keeping tabs on where you spend your money helps you make adjustments in your budget so you regain control of your finances. Budgeting apps can make this easier to accomplish.
2. Include “Fun Money” in Your Budget
Taking control of your finances doesn’t necessarily mean you deprive yourself of some things you like. When you create a realistic budget, set aside a certain amount for fun things like entertainment and hobbies. Doing this allows you to be in control of your finances as you enjoy life.
3. Seek Counsel When Needed
One very important aspect of loan and mental health management is being able to turn to someone to guide you through it all. Dealing with loans is hard enough, but when you add mental health issues, it can be quite overwhelming. Don’t be afraid to seek professional help from counselors. They can help you process your emotions and help set practical goals to overcome financial stress and anxiety.
4. Streamline Your Debts
Another way to relieve yourself of financial stress is debt consolidation. It makes for easier tracking and repayment. This is especially helpful if you have loans with high interest rates. Talk to a bank rep or a reputable lender, like Galaxy Credit, to ask if they offer debt consolidation. It could turn things around for you.
5. Celebrate Your Wins
Financial progress takes a lot of time and plenty of hard work. When you reach a certain milestone or hit a certain financial goal, pat yourself on the back. Celebrate those wins, big or small. Acknowledging those wins towards financial wellness also improves your mental health. A little positive reinforcement can make you go a long way in your journey toward financial freedom.
Boomers are cutting their credit card debt(Opens in a new browser tab)
Wrapping It Up
Juggling mental health issues along with financial responsibilities may be challenging. If you don’t have a strategy in place to help you, things can be too much to take. Keeping your mental health in check is as important as regaining control over your finances. Financial difficulties aren’t permanent. By following the tips outlined in this article, you can successfully take on multiple debts and remain healthy mentally