By Jude 
Most people consider debt as a wholly financial problem, but the reality is that it actually goes much deeper than that.
Every problem has a reason for why things have gotten as bad as they have, and with debt, there are usually many psychological factors that are implicated. Whether it’s from consumer culture and excessive impulsivity to people using purchases as a way to make them feel better during times of stress, there are dozens of reasons that present as the catalyst for people getting into debt.
Today, we’re going to explore three of the biggest psychological issues associated with financial struggle.
Shopping is Much Easier Today
Today, it’s much easier to buy things than it was twenty or thirty years ago, and that has big implications.
When someone can simply whip out their phone, browse on Amazon for a few minutes, and buy something that’ll be delivered the next day, it’s much easier to be impulsive. This is a problem for those who are using their purchasing as a way of coping with the stressors of everyday life.
It also makes justifying big purchases easier. When you’re not in a store, physically looking at the item and weighing things up, expensive products take on something of an ethereal nature. Tapping away on your phone makes it seem like you’re not really spending money.
Social Pressure
With visual social media platforms like Instagram and TikTok being as popular as they are, social pressure to buy certain things can easily mount.
What’s trendy is right there in your face, and influencers use their platform to push products to their millions of followers. This makes people feel that if they don’t have a particular product, they’re not worth as much, and this is damaging both from a mental health perspective and a financial one. Individuals can feel so insecure that they go into debt just to fit in.
Communication and Support Issues§
Everyone needs and deserves a supportive network of friends and family, but it’s often the case that when families are going through a debt crisis, communication breaks down.
Alex Kleyner, National Debt Relief CEO, talks at length about this problem. Debt ultimately carries a lot of psychological weight, and it’s easy for people to become ashamed and embarrassed about it. They feel they should be able to support themselves and their family, and they’d rather bottle everything up and try to manage it on their own.
What Can be Done About It?
The above problems are complex and multifactorial, and even if someone realizes they have an issue, it can be difficult to get to the bottom of it.
One of the most important things to address is financial literacy. Some people simply aren’t money savvy, and this perpetuates any psychological issues that are at play. The person may also benefit from going through CBT therapy with a therapist or counsellor to address the deep-rooted issues described above.
Beyond this, gaining a better understanding of one’s behaviors and the associated triggers can help individuals build a life more conducive to financial stability.
Having gotten to the root cause of the problem, the person can then move forward with a two-pronged approach: tackling the acute financial struggle and working towards a healthier mental state.