When you find yourself struggling with debts, your worries go beyond the monetary aspect. Indeed, even though we all know that money can’t buy happiness, there is nevertheless a clear correlation between money problems and your mental health. Dealing with money issues is highly stressful. Most people who experience debts also complain about sleeping problems, mood swings, loss of appetite, headaches, stomach cramps, abnormal heart palpitations and difficulties to maintain their concentration. While these might seem like random symptoms, there are often linked to chronic stress, anxiety, depression, and even panic attacks. Unfortunately, when your mental health is affected, your ability to make effective and productive decisions can also suffer as a result. It’s fair to say that if being in debt causes great emotional discomfort, you are more likely to act rashly in an attempt to solve the issue, which could lead to dramatic consequences. Some people find their financial situation so stressful that they prefer to avoid thinking about it at all, which, in the end, doesn’t help at all!

But debts, more often than not, don’t happen overnight. They accumulate over a short or long period of time. Consequently, you have a window of opportunities during which you can act and improve the situation before it affects your mental health as well. There is no denying that finding your way out of a debt trap can take time. But you’ll find yourself feeling more relaxed if you can work towards improving the situation.

You’re never on your own

More often than not, the situation can get out of hand quickly. Everything is fine until one day, you lose your job. If you can’t secure another alternative soon, the situation can get worse. When unpaid bills accumulate, you could lose everything: Your home, your car, your belongings. When harassing phone calls become an everyday occurrence, it’s difficult to think clearly. But remember, you don’t have to face your difficulties alone. You can find support with compassionate and experienced bankruptcy attorneys who can help you to go through a bankruptcy process safely. Indeed, filing for bankruptcy in extreme situations can help you to recover – both financially and emotionally. Additionally, it’s a practical solution when you feel your debts are following a snowball effect. It can stop a problematic situation from being impossible to manage and give you the relief you need to move forward.

Ideally, you should think of saving

Thankfully, not all financial issues intensify with crushing consequences. It’s not uncommon to be confronted with an unexpected invoice that can lead to debts, as you can’t pay. The keyword here is unexpected, meaning that you can’t plan it in your budget. However, what you can do is prepare an emergency fund to cover your back in case of uncertainty. You can’t live paycheck to paycheck as this could leave you vulnerable to any financial hiccup. Not everyone feels comfortable at the prospect of saving money – especially on a small income – but you can start small and grow your emergency fund over time. As a rule of the thumb, you should stash the equivalent of 3 to 6 months income. Take baby steps towards this goal, one dollar at a time.

Any chance you can spend less and get by?

Did you know that the failure to cut down on your expenses is the most common reason for debts? Indeed, we, as a population, tend to suffer from invisible fees, aka money we spend without even registering it. Owning a car can cost you over $8,600 a year, which you can cut down by using public transportation instead – especially if you only commute to work. Another typical money pitfall is your yearly energy bill. Did you know the average household spends over $2,000 a year in electricity? Switching your lightbulbs for LEDs and keeping your water heater low can dramatically cut your costs without affecting your comfort. Additionally, you could decrease your heating expenses by improving your insulation system, which means you can stay warm while heating less. Finally, you need to ditch your coffee on the go habit. The comforting cup of joe every day drags your budget down!

Side-hustles exist for a reason

You might not be able to switch job, but who says you can’t take a second job on the side? Side-hustle businesses serve precisely this purpose, and they don’t need a lot of set-up time. If you love writing, or you’ve got an area of expertise, you can share your knowledge via freelance writing projects. There are excellent opportunities on sites such as ProBlogger, but you can also join freelancing sites like Fiverr and Upwork to build up a regular client base. If you prefer to work for yourself, blogging offers valuable profits for those who can identify an exciting niche. Indeed, you can make money via affiliate marketing and sponsored posts, for instance.

Get rid of your unwanted stuff with a profit

Let’s get down to basics: You probably have plenty of items at home that you don’t use or want anymore. What’s stopping you from selling these for a profit? You can find a variety of platforms, from eBay to Facebook Marketplace, to promote your unwanted objects. However, growing a source of income through online sales requires extreme attention to details. You need to establish a trustworthy profile online – on eBay, buying items can also help to build credibility. Additionally, it’s best to sell things that are in good condition and that you can promote honestly. If you have to lie to get someone to buy, it’s not worth the hassle. But your unworn dresses and barely used gardening tools can be all you need to make a little money on the side.

Can you negotiate the price?

Last, but not least, it’s worth checking if you can negotiate the price of some items. While it doesn’t work on everything, it could be a useful strategy for significant purchases, such as buying a house or a car. The first rule of negotiation is to anchor the price, informing the seller that you don’t intend to pay more than a specific amount.

From spending less to building a side-hustle business, you can apply numerous tactics to get your finances back in shape and recover from debts. Even when the situation seems desperate, there is always a way out, even if it requires you to accept bankruptcy before bouncing back!