Beware! Bad Credit and Depression Are Linked

Everyone has bills to pay. But, when your debt spirals out of control it can lead to bad credit and stress. Are you past due on your bills? Disconnection notices in the mail? Calls from collection agencies? Who wouldn’t be stressed!

For some people, bad credit and stress can lead to depression. That’s a difficult road to travel alone.

Scientists have proof that bad credit and depression are linked

Recent studies have shown that there is a link between bad credit and depression. In a poll done by Associated Press-AOL, it was found that stress caused by debt led to severe depression in 23% of the people who were polled. That’s almost 1 in 4 people!

The people most prone to developing any form of depression are those who are near retirement age, single, less educated, have a low-income, or are in ethnic minorities. That’s a lot of people who are at risk.

Are you at risk for credit related depression?

Perhaps you’re getting frustrated with trying to juggle the bills and provide for you and your family’s basic needs.  You’re feeling the pressure and may be experiencing some depression. But how do you know that there is a correlation between the two?

First, you have to know the symptoms of depression:

  • Feeling sad and losing hope
  • Over-reacting to small things
  • Irritability
  • Erratic sleep patterns
  • No energy
  • Anxiety
  • Low self-esteem
  • Difficulty concentrating and remembering things
  • Recurring thoughts of death and suicide

 

If you’re experiencing any of these symptoms, please seek professional help. Counseling and medication may be expensive, but there are probably resources available in your community if you need help affording your care. Start by contacting your local health department or your place of worship.

Ok. I have some symptoms of depression. Now what?

One of the ways a counselor will help you deal with your depression is by helping you uncover the underlying causes. If you’re inundated with debt and it’s causing you stress, then it’s a good indication that’s one of the causes of your depression.

You know you’ve been having a difficult time making ends meet, but how can you tell if it is affecting your credit?

Take some time to dig a little deeper and take a close look at your financial situation. Be completely honest with yourself. (Remember, it can be detrimental to your health if you’re not!)

There have probably been some indicators of your credit score being affected, but you may not have picked up on them. It’s not your fault. Stress often can cause you to lose focus and overlook things that you normally wouldn’t.

How do you know you have bad credit or are headed down that road?  Here are a few red flags:

  • You were denied for a loan.
  • You’re behind in payments.
  • You are getting calls from collection agencies.
  • You’re required to put a deposit on a utility account.

 

Now that you realize your bad credit and financial woes may be the root cause of your stress and/or depression; you can address your financial situation and the depression simultaneously.

How? Don’t let your bad credit get any worse and don’t let the depression go untreated. Doing nothing is the worst thing you can do..

We’ve already talked a little about professional help for your depression. But what about professional help for your credit?

How to Get Your Credit Back on Track

Be pro-active in dealing with your situation. It’s time to rise above your circumstances and to take control of your money and your health.

.1. Take a realistic look at your finances. If you don’t have a budget, now would be a good time to make one. Even writing down a list of your debts and living expenses would be a start.

.2. Once you have an idea how short you are on income—brainstorm. Ask yourself if you’re living beyond your means. Is there anywhere you can cut back on expenses? Maybe you could cancel the cable television for now. And many people have done away with telephone landlines and just use their cell phones.

.3. Is there a way you can increase your income? Maybe you could pick up a second job on the side. Do you have a hobby that could earn you some extra money in your spare time?

.4. The number one, most important action you can take is credit restoration. If your depression is truly related to your financial situation, professional credit restoration may be the fastest way to start the healing process.

Why is credit restoration a good idea if you have credit related depression?

Getting someone else’s perspective on your situation will help—it can be very empowering. The situation is often not as bad as it seems.

One of the NCES credit restoration consultants will show you exactly how to repair and rebuild your credit – and then we will help you communicate with the three credit reporting agencies to make sure your credit report is accurate and shows your best credit score possible.

Our proprietary credit restoration process can help you remove collections, judgments, and repossessions. We also reverse your late payments to “paid as agreed” for important credit-building debts like student loans and credit cards.

Give us a call! Realizing that your bad credit isn’t a lost cause will give you hope and encouragement. Exactly what you need to help heal from your depression

Dealing with both your bad credit and depression problems at once will put you back in control of your life and give you the confidence to move forward to a brighter future.

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If you have any questions, please give us a call at 770-952-5168 or contact us online.

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Other articles that may interest you:
3 Instant Credit Score Fixes
Inspiration from NCES Founder George Cole
Pay For Credit Restoration? But I Can’t Even Pay My Bills!

This information is intended for informational and educational purposes only and not as legal advice. If you have concerns about your credit report, harassment, identity theft, illegal collections activity, garnishments, or property liens, you should consult an attorney who specializes in consumer rights and defense.

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