Dealing with debt
Zero Time to Waste is all about financial wellness, and we've often mentioned the importance of good money management for overall mental wellbeing. Money being our greatest source of anxiety, it is also shown that debt is associated with depression, anxiety, social isolation, sleep problems and stress. It is found that if someone felt financially secure, chances are they’d report overall wellbeing too (Journal of Consumer Research).
So we know that poor money problems is bad for our health, however, earning more is not necessarily the antidote. Higher earnings alone do not correlate with financial wellbeing, however, a sense of control of our finances does. Spending £3,500 a month when you're earning £3,300 is no better than spending £2,400 when you're earning £2,200.
Taking steps to get out of debt is a crucial part of gaining financial control, together with living below your means, practice mindful spending and regularly checking in on your bank balance. Here are five steps to get started:
Work out what you owe and to whom - be honest with yourself!
Research and chose either Debt Avalance or the Debt Snowball method.
Cut household bills - weekly shops and changing suppliers can make a huge difference.
Make a budget and stick to it - live below your means!
Put any extra money (presents, bonus, tax return, inheritance etc.) towards your debt.