A life full of debt is not healthy. If you are in debt, you cannot take the fun of life, live moments happily, and also your health would get affected with time because of the excess pressure you are taking on the mind and body because of the debt. There are various stages of feeling pressurized under debt, and every stage leaves behind its own imprint on the mind and body of the debtor. That is why, in the first place, it’s great to avoid debt and rather plan expenses and investments on your own potential by using saved money. And in case you are indebted, it’s good and really healthy to get the debt off your shoulders as soon as possible through smart methods of repayment, prepayment, and debt consolidation, etc.
Planning for taking a loan
The impact on health in a very minor scale starts from the planning to take a loan. Whatever is your cause for taking a loan, and whatever is your income or status, you will have to plan to take a loan. For this, you will have to go through several calculations, like how much you earn and save and spend, and then how much you can adjust your expense and savings to accommodate for the loan repayment EMI. You also have to plan, what kind of loan at what range of interest rate you are going to look for. For this again you need to do some amount of market research. And this will put you through some stressed research work and thinking obviously. It’s not a harsh phase at all but definitely makes you think and speculate a lot to prepare for the application process.
Hunting for a good deal
The next phase of stress starts when you start hunting for a good deal. Here again, you have to apply to various banks, finance companies, many private and online lenders and so on, and you have to see which lender approves you. This takes you through a lot of paperwork, form filling, and a lot of date tracking and so on. In the whole process, you apply for a loan, you keep a record of the application, you track communications with the lender, and you find more places to apply, and so on. This surely takes you through some hard work and stresses the mind.
Waiting for approval
Waiting for approval for a loan and getting the amount disbursed to you takes you through another roller coaster of tense situations, as you keep your finger crossed praying you to get approval soon and from a desirable lender. You like not all lenders although you apply at many places. Some lenders have more flexible terms or lower rates which attracts you more, and you earnestly want your application to be approved by them.
Implementing the pre-planned budget to repay the loan
Now when one or few lenders finally approve your loan application, and you proceed with the deal with one and get the loan disbursed, it’s again your turn to revisit your loan repayment plan and monthly budget. That’s because the budgeting and planning you did at the very beginning before applying at all were on a presumed rate of interest, tenure, and loan amount, which does not exactly match the loan details that you finally got approved, thereby affecting your previous calculations. And when you do this final calculation after the loan is disbursed, then you get to see the real picture with exact amounts. The pressure starts building on you as soon as you start cost-cutting and shrinking your expenses. You may have to give many utility usages, many luxuries, and lavish ways, and may have to compromise on many things to minimize your expenses. These surely pressurize you financially as well as mentally till you pay back the loan fully and close it.
Struggling with loan repayment
The problem starts mainly with failure to repay the loan on time. If you miss one or more EMI payments in a series or often miss some payments, delay payments, etc., then you get pressurized. This indicates your mismanaged financial status and bad debt management. And this surely is an alarming sign that you are in problem. The financial crises you get into slowly not just pressurizes you mentally, but also leaves an impact on the body. Tension, anxiety, and more work and stress about this leads to various health issues. This deteriorates health over time.
Struggling with deteriorating creditworthiness and legal problems
When you continuously fail to repay EMIs, then your creditworthiness is questioned. Delayed and failed payments get reflected in your credit history. Also, your credit score gets lowered due to this. As a result, your profile gets affected when your further loan applications to make up for the situation get rejected. You also get reminders, collection calls, and legal notices from your creditors. All these can be too much to bear for you, and you obviously get mentally pressurized which reflects on the body too.
Health issues due to loans
Both mental and physical health of any person can get deeply affected due to such financial pressure, the excessive burden on the budget, creditor calls and notices, and the damage done onto your reputation from bad debts. Before your life gets too much affected by all these, you must take a good stance. And that is why you must look for good debt consolidation methods to solve the issues before a bad debt ruins your credit score and profile, and gets out of manageable state. You can go through debt settlement reviews of debt consultants to understand how things can be brought to track and who you can take help of.
Managing debt and finances on time is vital so that you don’t give your health any shock from the related crises. For a healthier future, you must manage your stress and anxiety and try to keep up a peaceful life through smart financial decisions and smarter debt management.
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