2 MIN READ | General

David Tobin

Mental and Physical Side Effects of Bad Credit – Implement a Self-Care Routine

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David Tobin, (2022, January 3). Mental and Physical Side Effects of Bad Credit – Implement a Self-Care Routine. Psychreg on General. https://www.psychreg.org/mental-physical-side-effects-bad-credit-implement-self-care-routine/
Reading Time: 2 minutes

Most people are aware of the financial consequences of bad credit, such as higher interest rates and difficulty getting loans. However, they may not know that bad credit can also have several physical and mental health consequences

Consequences of bad credit

Bad credit has an adverse impact on our daily lives. Here are some examples of what you could experience if you have bad credit.

  • Mortgage or rental concerns. Bad credit can make it difficult to rent an apartment or buy a house. Landlords and mortgage lenders often check credit scores before approving applications, and those with bad credit may be seen as high-risk tenants or borrowers.
  • Insurance costs. Many insurers use credit scores to determine premiums, and those with bad credit may see higher rates. It’s because individuals with bad credit are seen as higher-risk customers. These are insurance protocols that insurers use to protect themselves.
  • Relationship struggles. Couples with bad credit may face tension in their relationship. One study found that couples with bad credit were more likely to get divorced than those with good credit. A study conducted by the National Library of Medicine shows that financial problems are one of the primary sources of stress in relationships. Another study by the National Endowment for Financial Education discovered that money is the number one cause of arguments among couples.

Health consequences of bad credit

We know stress causes physical and mental health issues, so financial stress is no different. 

  • Physical ailments. Bad credit can lead to health problems. A study by the University of Texas discovered that people with bad credit are more likely to suffer from depression and anxiety, resulting in poor physical health. The National Bureau of Economic Research stated in their findings that people with bad credit were more likely to have cardiovascular problems, such as heart attacks and strokes. The stress of dealing with bad credit can lead to several health problems such as ulcers, migraines, and heart disease.
  • Insomnia. Stress often leads to not sleeping well. Yet we know that sleep is one of the greatest tools we have to strengthen our immune systems and regulate hormones. Sleep helps keep your mind clear and able to deal with the stressors of the day – including making healthy financial decisions.
  • Reducing stress with a financial self-care routine. Taking 30 minutes each week to sit down and tackle your finances can have a powerful impact on your finances and how you feel about them.Look at your relationship with money. Why do you think the way you do? Where did those patterns come from? How did your parents handle money? Looking at these belief sets will give you insight into how to change your habits for the better.   

Build your routine

Things to consider at this step of the process: 

  • Include 10 minutes to check your bank accounts.
  • Review bill due dates and payments that aren’t automatically processed.
  • Set up and track financial goals.
  • Pay any upcoming bills.
  • Create or review your budget.

For more tips on how to take back control of your finances, check out CreditNinja’s breakdown of the biggest consequences of bad credit and how to combat them. They’ve also created an infographic with some of the best ways to implement self-care into your financial routine. 


David Tobin did his degree in psychology at the University of Hertfordshire. He is interested in mental health, wellness, and lifestyle.


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