Managing the psychological impact of being in debt

Debt can have a significant impact on your mental and emotional well-being. The constant stress of managing repayments, dealing with creditors, and worrying about financial stability can lead to a range of psychological issues.

Common psychological effects of debt

Stress and anxiety

• The pressure to meet debt obligations can cause chronic stress and anxiety.
• Symptoms: Trouble sleeping, difficulty concentrating, constant worry, and physical symptoms like headaches or stomach issues.

Depression

• Persistent debt can lead to feelings of hopelessness and depression.
• Symptoms: Lack of energy, loss of interest in activities, feelings of sadness, and social withdrawal.

Shame and guilt

• Many people feel ashamed or guilty about being in debt, which can erode self-esteem.
• Symptoms: Negative self-talk, reluctance to seek help, and avoidance of social situations.

Anger and frustration

• Debt can cause frustration, particularly if you feel trapped or unable to make progress in paying it off.
• Symptoms: Irritability, short temper, and conflict in personal relationships.

Managing the psychological impact of debt in the UAE

Acknowledge your feelings

• Recognise that feeling stressed, anxious, or depressed about debt is common and valid.
• Talk about your feelings with trusted friends, family, or a mental health professional.
• Benefits: Reduces isolation and helps you gain perspective on your situation.

Create a debt management plan

• List all your debts, including amounts, interest rates, and minimum payments.
• Prioritise your debts and create a realistic repayment plan.
• Seek professional advice if needed, such as from a credit counsellor or financial advisor.
• Benefits: Provides a clear path forward and reduces uncertainty.

Practice stress-relief techniques

• Engage in regular physical activity, such as walking, yoga, or sports.
• Practice mindfulness and relaxation techniques, like meditation or deep breathing exercises.
• Ensure you get enough sleep and maintain a healthy diet.‍
• Benefits: Helps manage stress and improves overall well-being.

Set realistic goals

• Break down your debt repayment plan into smaller, manageable goals.
• Celebrate small victories, such as paying off a single debt or meeting a savings milestone.‍
• Benefits: Keeps you motivated and focused on progress.

Seek professional help

• Consult a financial advisor or credit counsellor to develop a debt management plan.
• Consider therapy or counselling to address the emotional aspects of debt.‍
• Benefits: Provides expert guidance and emotional support.

Educate Yourself

• Learn about personal finance and debt management through books, online courses, and workshops.
• Stay informed about your financial situation by regularly reviewing your budget and credit report.‍
• Benefits: Empowers you to make informed decisions and take control of your financial future.

Resources for managing debt and mental health in the UAE

Financial Counselling Services:

• Dubai Financial Market (DFM): Offers educational resources and financial literacy programs to help individuals manage their finances and investments.
• Abu Dhabi Global Market (ADGM): Provides resources and guidance on financial management and investment.

Mental Health Resources:

• The LightHouse Arabia: A mental health and wellness centre in Dubai offering counselling and therapy services.
• Camali Clinic: A multidisciplinary child and adult mental health service in Dubai and Abu Dhabi.
• Dubai Community Health Centre: Provides comprehensive mental health services, including counselling and therapy.

Online Tools and Apps:

• Wally.me: Budgeting app to track spending and manage finances.
• YNAB (You Need a Budget): Helps you create a budget and stick to it.
• Calm: App for meditation and stress relief.

How Eltezam Can Help

Eltezam, a debt collection agency in the UAE, offers various options to help you manage and resolve your debt. By exploring payment plans and receiving personalised support, you can take control of your financial situation and reduce the psychological burden of debt.

By understanding the psychological impact of debt and taking proactive steps to manage it, you can improve your mental well-being and work towards a more secure financial future. Remember, seeking help and taking control of your finances is a positive and empowering step.

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