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The Real Impact of Student Debt: How Our Brains Handle It

Mia Mattsson | July 21, 2023

Edited by Hannah Locklear

Summary: Student debt may cause mental health issues and delay important life milestones, including buying a home, getting married, and having children. Luckily, there are strategies you can use to manage debt and its impact, including debt payment plans, seeking professional help, resolving your debts, and practicing mindfulness.

In the realm of personal finance, student loan debt is a topic of significant concern, particularly for young adults who are fresh out of college. With total U.S. student loan debt surpassing $1.7 trillion, it's clear that this financial burden is more than just numbers on a spreadsheet—it's a pervasive problem that affects not only individuals' finances but also their mental health. Let's dive into the real impact of student debt and how our brains handle it.

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Debt has a psychological impact

Countless studies have linked high levels of debt to increased stress, anxiety, and depression. The weight of student loan debt can feel insurmountable, leading to feelings of hopelessness and despair. Furthermore, chronic stress from debt can lead to cognitive changes. Studies show that ongoing stress can impair decision-making abilities, decrease memory capacity, and even alter brain structure over time.

Student debt can be a thief of future happiness

Carrying student loan debt doesn't just weigh heavily on present circumstances; it also steals joy from future life milestones. Whether it's delaying homeownership, putting off marriage, or avoiding starting a family, the ripple effects of student loan debt are far-reaching.

  1. Homeownership: Many graduates delay buying a home because their debt-to-income ratio makes it difficult to qualify for a mortgage.
  2. Marriage: High debt levels can lead to friction in relationships, often causing couples to delay marriage.
  3. Starting a Family: The financial strain of student loan debt can lead individuals to postpone having children.

Neuroscience offers fascinating insights into how our brains react to debt. When facing financial stress, our brains can trigger a fight-or-flight response, which can lead to impulsive decision-making or a sense of paralysis.

In the case of student loan debt, this might mean making minimum payments without a solid repayment strategy or ignoring the debt altogether, both of which can exacerbate the problem. It's crucial to understand these reactions to effectively manage debt and mitigate its psychological effects.

Use these strategies to manage debt and its impact

Recognizing the psychological effects of student debt is the first step toward tackling the issue. The next involves developing effective strategies to manage both the financial and psychological aspects of this debt. Below, we explore some of the approaches that can help reduce the burden of student loan debt and its mental toll.

Make a debt payment plan

Having a clear and structured plan for repaying your student loans can alleviate stress. Consider different repayment strategies that fit your financial situation. Two popular methods include the debt avalanche and the debt snowball.

The debt avalanche focuses on paying off high-interest loans first. On the other hand, the debt snowball method involves targeting small debts first, aiming to create a sense of accomplishment and momentum. Both of these strategies can bring structure and progress to your repayment journey, making the task seem less daunting and more manageable.

Seek professional help

But don't stop at financial advice. The mental strain that comes with student debt is just as significant as the financial burden. Mental health professionals can offer strategies to cope with stress, anxiety, and feelings of overwhelm linked to financial difficulties. Seeking help from therapists or counselors can provide you with psychological tools and techniques to manage the mental and emotional effects of debt.

Just as you might turn to the best paper writing services for academic support, similarly, professional financial advisors can provide invaluable guidance on managing debt. They can help you understand the intricacies of your loans, identify suitable repayment strategies, and help you navigate other financial concerns.

Resolve your debts

When debt collectors start calling, you might feel totally overwhelmed. Luckily, there are still ways to resolve your debt even after you’ve missed months of payments, or even if you’ve been sued.

SoloSuit can help you resolve your debts for good. Our software can assist you in requesting a debt validation, responding to a debt lawsuit, and settling your debts before you have to go to court. You don’t have to face your debt alone. SoloSuit is rooting for you.

To learn more about how to settle your debt, check out this video:

Practice mindfulness

Mindfulness exercises such as meditation, deep breathing, and yoga have been proven to reduce stress and improve mental well-being. They can help you stay grounded in the present moment, keeping worry and stress at bay.

Incorporating mindfulness practices into your daily routine can help combat the fight-or-flight response triggered by financial stress. Over time, mindfulness can improve cognitive functions like decision-making and problem-solving, both of which are crucial in managing and eventually overcoming debt.

Key takeaways

In conclusion, the effects of student loan debt go far beyond financial strain. It influences our mental health and future life choices. However, understanding how our brains react to this stress and using strategies to manage both the debt and its psychological effects can lead to a healthier financial future. If you’re a busy student and can’t find the time to think about your financial future, consider hiring a paperwriter to help you keep up with your studies while also setting aside time for financial planning.

The debt burden is heavy, but it is not insurmountable. And remember, asking for help is not a sign of weakness but of strength and resilience. SoloSuit can help you resolve student loan debt and move on with your life.

What is Solo?

Solo makes it easy to resolve debt with debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt. SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

SoloSettle can help you contact your debt collector or creditor and negotiate the debt to settle for less, all online. It simplifies and streamlines the process to settling your debt.

No matter where you find yourself in the debt collection process, Solo is here to help you resolve your debt.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

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