KEY TAKEAWAY: Debt can be a useful tool in our lives. However, depending on how and to what extent we use debt, it can also exact a high cost. Therefore, managing debt is important for our financial and overall wellbeing, so in this video we’ll cover how you can manage yours. Watch today’s video at https://youtu.be/j5WsmAlCTAc.

Debt can be a useful tool in our lives, but depending on how and to what extent we use debt, it can also exact a high cost. 

According to the 2022 Survey of Consumer Finances, 77% of households had debt, with 46% of American households having credit card debt to the tune of an average of $7k, something that can be particularly stressful depending on our financial situation. 

The bottom line is that whether a house, a car, an education, or something we charge to our credit card, many of us have to manage not only the money we have but also the money we’re borrowing from someone else. 

And how we manage that impacts our financial and overall well-being.

It impacts our financial and overall well-being because, depending on how and to what extent we use debt, it plays a role in the level of financial and psychological stress we have in our lives. 

• It can impact our ability to work toward other financial goals (because if we’re working to pay off debt, that is less money we can allocate to our other goals, such as saving for a home or retirement). 
• It can affect our credit score (which impacts our access and cost of credit, as well as other things, like buying a new phone, renting an apartment, or getting a new job). 
• It can create significant psychological stress. According to AIMS Public Health, people with debt are three times as likely to have depression, anxiety and stress from worry.
• It can create not only internal stress but also put stress on our marriage. Studies show that debt causes a big rub to marital satisfaction and no matter the length of marriage or level of wealth, the greater the debt, the greater the rub. 

Therefore, if the debt you have is doing any of the above or feels like a burden you are carrying around, then in today’s video, I talk about the steps to take to get rid of it.

Specifically, I cover:

• What debt is
• Why credit card debt can be particularly challenging
• What to have in place before you begin paying down debt
• Strategies for tackling debt
• How to balance debt repayment with saving and other financial goals
• What to do if you feel overwhelmed by debt
• How to stay motivated and on track

 Watch today’s video for steps on how to manage debt. 
Direct link: https://youtu.be/j5WsmAlCTAc

References:

Dew, Jeffrey (2009). Bank On It: Thrifty Couples Are the Happiest. Downloaded April 21, 2016, from http://www.stateofourunions.org/2009/bank_on_it.php

Federal Reserve (2023, October). Changes in U.S. Family Finances from 2019 to 2022Evidence from the Survey of Consumer Finances. Retrieved from https://www.federalreserve.gov/publications/files/scf23.pdf

Wiltshire JC, Enard KR, Colato EG, Orban BL. Problems paying medical bills and mental health symptoms post-Affordable Care Act. AIMS Public Health. 2020 May 6;7(2):274-286. doi: 10.3934/publichealth.2020023. PMID: 32617355; PMCID

IMPORTANT: The information provided is for educational and informational purposes only. It is not intended to be a substitute for professional advice, diagnosis, or treatment. Always seek the advice of a qualified professional with any questions you may have regarding the topics discussed here as the topics discussed are based on general principles and may not be applicable to every individual. 

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