If your financial struggles are causing you shame, you’re not alone. In fact, it’s quite common to internalize social stigmas surrounding debt. In turn, such feelings can lead to feelings of embarrassment and low self-esteem. Remember, though, that financial challenges can affect anyone. And, in some cases, for residents of the Grand Canyon State for example, an auto equity loan in Arizona can help. No matter what your circumstances are, here’s how you can confront debt shame head on.
What is Debt Shame?
Debt shame is the feeling of embarrassment, guilt, regret, or remorse about being in debt. Such emotions may also extend to how the debt was accumulated.
These feelings can derive from internalized beliefs or external judgments and frequently cause people to obscure their financial challenges, feel isolated or anxious, and avoid seeking help.
More than being worried about money, debt shame can affect self-esteem and make it more difficult to converse candidly about their financial woes, which can sometimes worsen the situation.
How to Confront Debt Shame
Acknowledge and Normalize Your Feelings
Debt is all too common and in no way, shape, or form defines your worth as a human being. At some point, many people experience debt. So, while feeling ashamed by your financial situation is understandable, it’s certainly not necessary to beat yourself up.
Look Directly at Your Situation
As much as you might want to, sticking your head in the sand will not only not make your situation better, it could make it worse. Avoiding your debt will also heighten feelings of anxiety. Without self-judgment, gather your credit reports and review all your debts, noting monthly payments and interest rates. You can’t begin to improve your circumstances without a clear-eyed view of them.
Reject Negative Self-Talk
Be mindful of what you tell yourself about your finances. Do you criticize yourself harshly or do you show yourself the compassion that you likely would show a friend in your situation? Remind yourself as often as you need to that carrying debt is not a personal failure. After all, some 77% of U.S. families carry some form of debt, according to Marketwatch.
Seek Support
Many people experiencing debt keep their situation to themselves, which can increase stress. It can also keep you from receiving practical advice that could help you. So, open up to trusted friends, family members, or a financial professional. Sharing what you’re going through can provide emotional relief and can also put you on a new financial path. If needed, consider joining a support group or consulting a therapist.
Create a Plan and Establish Small Goals
Once you’ve looked directly at your situation — you know how much you owe, etc. — put together a realistic budget and prioritize your obligations. Zero in on small, doable steps such as paying off a small debt first to establish momentum, or hewing to your budget for a month to build confidence.
Relinquish the Shame and Focus on Progress
Acknowledge that feelings of shame can hold you back from taking actions that can improve your predicament. Recognize your feelings but do not let them influence your actions. Once you begin making positive steps, however small, be sure to celebrate them. Also, always remember that you’re far from alone in your journey to a debt-free life.
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