What Is Financial Stress, and How Does it Affect Me?
Stress – the anxiety of going to work, running late for a meeting, joining colleagues for lunch. The pressure built from a disagreement with a sibling, a long line to enter a store, a task that is now overdue. The tightness in your chest because of running a stop sign, rushing the kids to school, waiting to present in front of your colleagues.
According to the National Institute of Mental Health, “Stress is how the brain and body respond to any demand. Any type of challenge – such as performance at work or school, a significant life change, or a traumatic event – can be stressful.” Experts go on to emphasize everyone experiences stress from time to time, although the way people cope with stress divides the majority.
While not all stress is considered “bad,” such as signals during instances of danger or non-life-threatening situations encouraging motivation, a Yale University study suggests nearly 50% of people endure levels of stress which leave them unable to sleep at night. Stress not only impacts your mental health (poor sleep, anxiety, panic, isolation), but also your physical health:
- Increased blood pressure and heart rate
- Declined immune system functions
- Alterations in mood
- Reduced memory
- Weight gain/loss
Individuals with financial stress are twice as likely to report poor health overall and four times more likely to complain of ailments.
Financial Issues Are a Primary Cause of Stress
Among the variety of situations that encourage stress, studies conclude the number one cause of stress is related to one’s personal finances. A Podcast with Dr. Linda Gallo of The American Psychological Association details 72% of Americans reported stress related to money a minimum of three times within the past month. This disproportionally impacts the middle and working classes: “…there are a number of factors that contribute to higher levels of stress in people with lower incomes. First, as we know from the Stress in America survey, financial stress is a very common cause of stress overall, and it’s more likely to occur if people have lower incomes. But people with lower incomes may also experience exposure to stress across many other domains in their lives. They may work in jobs that are stressful because they are demanding.”
Individuals who reported major financial stressors experienced greater levels of psychological distress and lower levels of psychological well-being – “the social context of stress exposure is a key determinant of stress responses. Whereas those individuals who view themselves at a relatively higher position within their community tend to show decreased levels of inflammation and report better overall psychological health.”
How Can We Curb the Effects of Financial Stress?
There are several steps you can take to minimize the likelihood that you’ll experience financial stress:
- Pay Bills as They Come – Studies suggest paying bills as they come throughout the month allows for less stress and time: removing mass amounts of money to pay for bills at once is emotionally draining. Performing these tasks in smaller doses is “far less daunting.”
- Spend Sensibly – Purchasing cold brew coffee provides instant gratification, but keeping in mind whether you can afford that coffee is essential. Breaking down major sources of income drainage provides insight on how to end self-financial sabotage. Keep in mind the key phrase, “everything in moderation.”
- Work Towards a Goal – Setting an attainable goal will provide happiness without the subconscious fear and anxiety of freely spending without a goal. Improve your financial literacy. Create a budget. Save for retirement and other long-term plans. Save for short-term and mid-term plans. Having goals allows you to have something to work towards.
- Debt Consolidation – Working towards a goal will assist with your financial stress, allowing you additional disposable income while simultaneously allowing you will learn how to properly maintain your finances. Whether you reduce your credit card debt or an expensive car loan with a high APR, unearthing methods to consolidate debt is one step towards a physically and mentally healthier life.
Refinancing Your Car Loan with iLending Can Help Reduce Your Financial Stress
A major source of stress revolves around the cost of owning a car. Data shows that approximately one out of every four car loans is overpriced, leading to high payments often with excessive interest rates.
iLending saves clients an average of $145/month on car payments and often can include added protections as part of the car loan refinance process. This can reduce stress and minimize future anxiety. We expect to save consumers more than $50 million in car payments this year alone by offering a quick and easy process to refinance and save, delivering the peace of mind and relief you need.
iLending’s exclusive You First Approach™ has been designed to help you gain financial freedom and live a more empowered life. Our nationwide team of professionals aren’t focused on a transaction, but instead are committed to understanding each client situation deeply. We provide a Loan Consultant who takes the time to understand each unique situation and offer respectful and customized service at every step.
Apply for car loan refinancing today. The application process is free and will not impact your credit score.
What would you do with an extra $132* in your pocket?
