Posted by Lending Club :: July 11, 2007 @ 1:53 pm

One effect of credit card debt that is often overlooked is the emotional and damaging impact uncontrolled debt can have on your life, This goes beyond just your finances. The burden of overwhelming debt impacts your relationships with others, how you view yourself, and how you view the world.

According to a 2001 study by the non-profit group Myvesta, 49.3% of people having a problem with debt could be classified as being depressed. Compare this to studies showing 9.5% of the general population as clinically depressed.

Let’s be clear: debt does not cause depression. The correlation is clear, but one of the key phrases in how they describe the study participants is that they have a “problem with debt.”

If you learn to manage your debt, and control it, you can avoid the overwhelming bad emotional effects of “problem debt.” I have debt. In fact, I have a ton of it, but I’m learning to manage the effect it has on my emotions by working to be in control of my debt.

For me, this means budgeting, consolidating, and paying down debt. When you are in control of your debt, and not the other way around, it changes how you feel about yourself and your financial situation.

Here are three practical ways you can control your debt so it won’t control you:

1. Budget – Yes, it’s old school, but it works. There are some great new websites like wesabe.com and buxfer.com to help you visualize and organize your spending. Plus they are way cooler than a spreadsheet.
2. Consolidate – If you can pay off your high interest rate credit cards with a lower rate option, do it. Just don’t return to using those cards!
3. Talk about it – Find people in your life you can share your debt issues with. They can help you stay accountable to paying down your debt.

Let’s not beat around the bush, having tons of debt bites. By taking actions to manage and control your debt (especially credit card debt), you can avoid the emotional impact debt can take on your life.

Utilize all the tools and resource information that you are able to find. The blog here at Lending Club has steadily become a good source of information. We welcome your comments about other resources you have found to be helpful.