Stress and Spending: An Endless Cycle

2014-03-04

The link between stress and spending has long been established. In times of stress, many people make poor decisions about the use of credit and dealing with their debt issues. What results can be a cycle of stress and spending --the higher the stress, the more you spend and the more you spend, the higher the stress.

Spending as a Short-Term Stress Fixer

People often spend to get a short-term solution to their stress. It’s easier to spend five dollars on a latte to keep your energy up than to deal with the stress of a working under a tight deadline. It’s easier to spend money on a great outfit than to deal with the social anxiety you feel when you attend a party. Spending to calm down in a stressful situation can be a risk factor for overextending yourself on credit.

Using Credit to Finance the Unexpected

Stress can also be brought on by taking on debt to cover extraordinary expenses or to finance emergencies. Many households do not have the funds reserved to cover those expenses and have to borrow the money. The resulting payment required to maintain that credit makes it difficult to change the pattern and begin putting money aside for these types of expenses. There is now the added stress of carrying the debt load and the worry about what will happen next time an unplanned financial emergency happens.

Stress Affects Health and Well Being

The stress from carrying your debt can also create underlying issues which can make the situation worse. This may include sleepless nights, irritability, stomach problems and other health issues. If your spending and the resulting debt is causing you additional stress, such as affecting your health and your family life, it’s time to seek the assistance.

MNP Can End Your Financial Stress

A trustee in bankruptcy is a licensed advisor that can help you determine the best option to deal with your debt troubles. At MNP, we will help you find a solution that fits your budget and addresses your concerns. Don’t put off peace of mind and contact a trusted advisor at MNP today to schedule a free confidential consultation.