Experts: Debt is hurting Americans’ health but managing it can help

CHARLOTTE — May is Mental Health Awareness Month, and we’re marking it with special reports, including how debt can take a serious toll on your mental health, and what you can do to manage both.

More Americans are facing significant debt as credit card balances rise.

According to WalletHub, 45% of U.S. households said credit card debt is their biggest struggle and it’s becoming a health concern.

“Financial hardship is a major stressor,” said Dr. Ashwini Nadkarani, a psychiatrist. “It can cause people to worry day to day.”

Nadkarani said she’s not surprised that one in three Americans say their household debt is literally making them sick.

“With that chronic stress, people are more likely to experience depression, anxiety and as a result of that, issues with their sleep, their energy their appetite and their focus,” Nadkarani said.

She says all that stress can also cause inflammation and high blood pressure, and it doesn’t help that many people just don’t talk about it.

“We’ve had scenarios where a husband or wife, their spouse, didn’t even know about the scenarios going on there, so that creates another level of anxiety,” said David Shapiro, a financial advisor.

Shapiro said he’s seeing more clients who need help getting out of debt, and there are a couple ways to begin.

“Maybe you start with paying off the highest interest rates first and then work your way down,” he said. “That’s called the Snowball Method. There’s also what’s called the Avalanche Method where you just pay off the smallest ones first because it sure feels good to just get rid of one.”

Shapiro said:

• Try negotiating a lower interest rate with your credit card company.
• Cut your expenses.
• Look for ways to increase your income.

Your health will benefit as you follow a plan to erase debt.

“Celebrate those milestones when you do have those big accomplishments and be proud of yourself as it goes through, fully understand it can be overwhelming, but with the right plan in place, you can do it,” Shapiro said.

Experts said that the feeling of taking control of your debt can make a tremendous difference in your mental health.

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