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Financial issues and mental health go hand in hand

On behalf of Cohn Lifland Pearlman Herrmann & Knopf LLP | Dec 16, 2020 |

Struggling financially can mean that you are in a very stressful period of your life. If you have recently lost your job, are struggling to find employment or have outgoings that you have no control over, you may feel powerless against your situation. This can lead you to want to simply give up or stop trying to improve your finances. Many people in this situation simply bury their heads in the sand because accepting the reality of their situation takes too much of an emotional toll.

If you are even taking steps to try to improve your financial situation, you should congratulate yourself. This means that you are accepting your reality and you are brave enough to face the challenge. There are many options available to those in debt, and one of these options is bankruptcy. However, bankruptcy is often a prospect that debtors are unwilling to entertain because they feel shame, embarrassment or a sense of failure in doing so. The following are some tips for understanding and untangling these emotions so that you can decide on the right thing to do.

Exercise self-compassion

It’s common for people to be harder on themselves than people whom they care about. You may feel that your debt and need to file for bankruptcy makes you a failure. But you should ask yourself what you would say if your best friend was going through the same thing. It’s likely that you would encourage and support them.

Separate material wealth with self-worth

Your bank balance does not equal your importance or worthiness as a human being. Never allow your financial status to affect your self-worth.

Focus on what you’re proud of

Instead of feeling ashamed for filing for bankruptcy, think about what you’re proud of. Consider the courage you have to improve your situation and feel good about that.

When going through difficult times, it is important that you acknowledge your emotions, and consider what actions you can take to improve your situation.