The Psychology of Resilience After Debt

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Anybody who has dealt with tax debt knows that the stress from this burden spills over into other aspects of everyday life. Research verifies this, with multiple studies highlighting the far-reaching ways in which seemingly minor debt can wreak havoc. The negative impact may continue long after debt has been paid in full.

The good news? The ill effects of tax debt need not be permanent. While research reveals extensive damage from a debt-ridden lifestyle, it also shows that most people are more resilient than they realize.

Reducing or Eliminating Debt: The First Step to Recovery

In many cases, the most effective solution to addressing the psychological toll of debt involves tackling the problem head-on. A proactive approach is best, as it provides some semblance of control after dealing with the constant interference of IRS representatives or debt collectors.

A Proceedings of the National Academy of Sciences study reveals that debt relief significantly improves psychological functioning. It also promotes strategic financial decision-making, thereby reducing the likelihood of future debt or other economic issues.

Common Approaches to Recovering After Debt

While paying off debt can spur huge improvements in mental health, some element of emotional suffering may continue in months or even years to come. This can be tackled by developing greater resilience.

Preferred strategies differ, but many people find success with a practice known as cognitive restructuring, which involves reframing negative experiences. Meditation and yoga may also help.

Other options include:

  • Connecting with empathetic people to share your story.
  • Pursuing proactive measures to prevent debt from taking over in the future.
  • Finding a sense of purpose in helping others avoid debt and its emotional devastation.

The sooner your tax debt is under control, the sooner you can focus on recovering from the emotional element of this ordeal. Look to the Highland Tax Group for compassionate service every step of the way.