We are all familiar with the unexpected expenses that can’t be delayed. Whether you need to fix the car or have a medical emergency, bills that come out of the blue can strain your budget. However, with the right attitude, you can prevent the sudden bill from becoming debt.
What’s the right attitude? We all understand how to handle money matters. In theory, there is a clear process to deal with unexpected expenses, starting from checking for errors to building a payment plan. It’s as foolproof as financial strategies go. However, when the unexpected invoice appears, you can’t help but react entirely differently. Why don’t you follow the simple and straightforward repayment strategy you’ve designed? Most of us do because we give in to our emotions. Unexpected expenses can create debt. Therefore, if you want to manage your debt effectively, you need to manage the mental toll associated with it.
Fear of finance impedes your actions
Chrometophobia is the scientific name for fear of money matters. However, it’s a surprisingly common phobia that can affect a variety of households. Unlike many other fears, chrometophobia may not have any visible health manifestations such as heart palpitations, heavy breathing, etc. Yet, it affects the way you handle money matters, postponing dealing with finances for as long as possible, for instance. An occupational therapist – you can learn more about their training and services here – can provide support and guidance in managing your fear. The worst thing you can do when it comes to money is to ignore it!
Panic forces rushed decisions
Debt is a word that can send a shiver through your body. Some people can already feel cold sweat running down their back when they think of debts. This feeling is called panic. A panic attack can transform the way you perceive an unexpected invoice. Rather than planning how to settle the debt safely over time, you may feel tempted to find a quick solution that promises to make the debt disappear rapidly. That’s how a lot of young people fall into the trap of payday loans, which guarantee you can receive the money in a matter of hours. Unfortunately, payday loans come at a high interest rate, which can aggravate the debt situation if you’re not careful about those! Panic creates a vicious cycle of rushed, poor decisions, that feed into each other and become overwhelming.
Sensation of being worthless
Oh no! How could I have landed in such a situation? I’m so ashamed of myself!
Does this sound familiar? A lot of adults are too embarrassed by their finances to seek assistance and guidance. Feeling ashamed is a debilitating emotion that can prevent you from acting. It can aggravate the situation as it encourages you to ignore the debt or hide its existence. For instance, in a household, when one person is ashamed of their financial situation, they may compensate by engaging in even more expensive purchases and activities as a way of proving their worth.
Dealing with debts begins with understanding how unexpected expenses make you feel. Bills can trigger fear, panic-chain reactions, or confidence issues that interfere with your ability to pay off the invoice and avoid debt. In other words, as long as you don’t approach debt as a mental health journey, you make it hard to manage financial matters.