The Health Dangers of Looming Credit Card Debt

By Eva Hilton

Buying on credit remains as popular as ever in the United States, even after the tough lessons of the 2008 global financial crisis. Over 46% of all American households have credit card debt and the average outstanding amount is $15,191. Although credit card debt declined immediately after the financial crisis hit (between 2009 and 2010), the number of indebted families rose again sharply in 2011 and remained at that higher level ever since. A lifestyle of living pay check to pay check fuels the use of credit cards, but the experience of college student debt is also one that can build a habit and a sense of normalcy of being indebted. Yet what many Americans fail to realize is that credit card debt not only has the potential to result in financial woes, but also in a wide range of health problems.

Debt and High Blood Pressure

Scientists at Northwestern University conducted a study among indebted Americans, in order to determine what health effects looming debt had on one's health. There were a total of 8,400 participants in the study, all of whom were between 24 and 32 year of age. What they discovered was that indebtedness and high blood pressure are closely linked, especially among young Americans. It was specifically one's diastolic blood pressure that appeared to increase as a result of major outstanding debt. The study focused on people who noted that their amount owing was so severe, that they would be unable to break free of it, even if they managed to sell all of their assets. Those with high debt had blood pressure levels that were 1.3% above the median. While this may not appear very significant at first glance, doctors note that levels that are just 2% higher than the mean result in a 15% higher risk of suffering a stroke than the average population. Americans in debt were also 13% more likely to display symptoms of clinical depression. With 73% of Americans noting that financial woes cause significant stress in their lives, it is clearly time to take the health risks of credit card debt seriously.  

The Connection Between Debt and Drug Use

Out of control credit card debt is also strongly connected to drug abuse, according to research conducted by the Centers for Disease Control and Prevention. Depression and debt are often part of the same cycle, and one that is very difficult to break. In a comprehensive study of attempted suicide among middle-aged Americans, researchers discovered that two of the most common factors present in a majority of cases were prescription drug abuse and financial challenges. Poverty and addiction are very closely linked, with scientists at the National Institute for Drug Abuse noting that "exerting self control can become seriously impaired" when someone is addicted to drugs, and this has a major impact on one's personal spending and financial choices. Some drugs, heroin in particular, result in drastically decreased mental functions, depression, as well as medical conditions, such as heart failure and severe arthritis, which are costly to treat for people without comprehensive medical insurance. Treatments specialists who deal with heroin addicts also speak of debilitating "bone aches" and the necessity of comprehensive medical intervention, to get the patient's health and overall well-being back in order. The rise in heroin use in the United States is becoming a major concern and is fueled by the fact that this form of contraband is now cheaper than ever, with deaths related to heroin having increased by a staggering 84% in New York City between 2010 and 2012. The same study, which formed part of the National Survey on Drug Use, showed that heroin use had risen by 79% nationally. 

The connect between drug use and debt is complex and reciprocal, in that the stress caused by out of control credit card debt can lead to an attempted escape from this situation through drug use, but drug addiction as well often results in serious debt, among people who otherwise would not have gotten into such financially dire situations. Yet in addition to drug use, staggering credit card debt has been shown to lead to a range of other health issues, including anxiety, depression and high blood pressure, which in turn can lead to heart disease and stroke. The culture of buying on credit and worrying about making payments later has become pervasive in western society, and while this may be convenient, it can also come back with a vengeance years later, when debtors pay not only with their wallets, but also with their health. 

Student Debt Woes—Managing Finances and Curing Debt in the "Real World"

By Aniya Wells

There are few things more terrifying than entering the world of financial responsibility for the first time. Many of us truly enter this adult world after graduating college and earning a degree towards our career. Of course, upon graduating from college and entering the world of financial responsibility, we are also faced with paying off student loan debt and landing a job in the most challenging job market in decades. It can be an extremely overwhelming time for any individual. While debt is always a stressful thing to cope with, it can be especially so for those who are completely new to the process. Use these tips and guidelines to better manage your student debt right out of college and become a fully functioning "real world" citizen.

Do Your Research

Before you can fully tackle difficult student debt it is essential that you educate yourself on your debt situation and how student loan repayment works. Yes, this may mean spending sometime outside of your college campus looking through documents and studying papers, but it's well worth it. Do your research some. Figure out what the terms of your student loan or loans are. When is the grace period of your loan over? Just how much are you going to have to pay each month? What do your interest rates look like? These are all essential questions that you need to be able to answer before you start paying off your loan. Take the time to look through your loan agreement. There may be some things in the print that surprise you and most loan agreements work to provide a general explanation of how loan repayment works.

Meet that Minimum

Once you've done your research on when you need to start paying your loan and what your minimum balance should be, the next step is actually making the payments. You should be sure to always meet that minimum balance. While this can feel completely impossible at times, try to take a close look at your finances and see where you can improve your budgeting. Many people put loan repayment as a last factor in their budgeting plans—this is the wrong way to go about things. Try to get yourself out of debt first, spend and get where you want to be in other financial matters later. It is recommended to try to meet that minimum payment amount each month along with as much extra as you're willing to spare. Even just five or ten dollars more a payment can make a huge difference in the long run.

Stay Current

Be sure that you are staying up to date and current with the news and policies concerning student loan debt. With so many young Americans finding themselves head under water the day after graduation, the government and many loan agencies are working to help the young generation. There are new government pardons and subsidies that are put in place to help out current "real world" adults dealing with student loan debt. Things can change in legislation that may affect your payments, so try to stay up to date on all things student debt.

Author Bio:
Aniya Wells particularly loves reading and writing about online education, although her interests span different niches as well, including personal finance, parenting, sustainable living, and more. Accredited online degree programs are hard to find in the online morass of scams, so Aniya's ultimate goal is to help her readers figure out the maze of online education. She can be reached for questions or comments at aniyawells@gmail.com.

4 Tips for Helping your Partner Get out of Debt

Guest Post by Maria Rainier

If there is one thing in common that almost all American adults have is that they carry with them at least some personal debt. In fact, it's very often the case that what brings us together are the hardships—financial and otherwise—that we've endured over the years. Many adults, after becoming very involved in their respective romantic relationships, decide to pool together finances. Whether this means simply living together and sharing related costs, or going as far as to take on a partner's debts, deciding to entangle yourselves in each other's finances is a huge step. Here are some things to consider before helping your partner tackle his or her debts, or vice-versa.

1. Be completely honest about your debts as soon you get serious about your relationship.

There's nothing worse than being with a person romantically for several years, perhaps even approaching marriage, when your partner suddenly discloses the enormous pile of debt they've accrued over the years. Of course, when you love someone deeply enough, you'll do anything for them. But to be fair to your partner, and for your partner to be fair to you, it's important to be as honest as possible as soon as possible so that you can begin managing each other's debts.

2. Help control each other's discretionary spending.

One of the main reasons that most adults cannot control their debts incurred before marriage is that they don't make it a priority. Once you both become privy to your respective debts, you can help each other out by making a joint budget that allows each of you to pay off more than the monthly minimum on different loans and debts. If you aren't committed enough yet to where you are actually paying off your partner's debts, you can, at the very least, help each other prioritize your debts by controlling your monthly expenses.

3. Don't jeopardize your future to help your partner get out of serious financial trouble.

Perhaps one of the main reasons that married or otherwise committed couples end up splitting is over serious financial troubles. If you go so far as to cover all or a significant portion of your partner's debts, and in the process you incur significant debt yourself, the end result will only be mountains of resentment. Of course, if you can afford to help your partner out, then by all means do so, if you feel that the commitment warrants that sort of generosity. However, if you hurt yourself financially in the process, be wary.

4. Establish a long-term repayment plan.

If you do end up paying for a reasonable portion of your partner's debts, or if your partner pays for yours, set up a repayment plan that you can stick to. For example, my brother paid for about $4,000 of his then-fiancée's student loans. This ended up being a great idea, just because now she owed him, instead of a debt company that would charge her significant amounts of interest. Now, four years into their marriage, she's paid him back completely and they are both well on their way to being debt-free.
It's terrible that finances can have a huge, mostly adverse, impact on personal relationships. But if you're careful, you and your partner can use your relationship and teamwork skills to both relieve your debt load. Good luck!

Author Bio:
Maria Rainier is a freelance writer and blog junkie. She is currently a resident blogger at First in Education where she writes about education, online colleges, online degrees etc. In her spare time, she enjoys square-foot gardening, swimming, and avoiding her laptop.

Credit Card Debt vs. Student Loan Debt: Which Should take Precedence?

Guest Post by Mariana Ashley

With Labor Day now done and long over with, all colleges have officially commenced. That said, there are many students who will be completing their final semester/year of college. While many are looking forward to earning their diploma, many are dreading what happens shortly after graduation—repaying student loans. But the situation may seem a lot worse for graduates who have to face a double whammy: student loan and credit card debt. If you find yourself in this situation, which debt should you try to take care of first and why? To find out, continue reading below.

What Kind of Debt Gets Higher Priority?

To state it rather directly, you should always aim to clear your credit card debt before your student loan debt. This is because since your credit card is considered revolving debt as opposed to installment debt, it will impact your credit score more ferociously and more quickly than a student loan debt. That's not to say that your student loans should be disregarded. But if you have some sort of student loan grace period—which is typically around 6 months or so after graduation—you should put all of your energy to wiping out your credit card debt first before making payments to your loan. It's understandable why you may want to pay off your student loan first during the grace period, after all you typically do not acquire any interest during this time. But ultimately credit card debt will do more damage. If you find an extremely high-paying salary job and can afford to pay off both credit card and student loans simultaneously then by all means do it. But if your resources are limited, go with the credit card debt first. If your student loan grace period expires and you still have a hefty credit card balance, talk with a student loan officer immediately to figure out a way to make the smallest monthly payments possible. Sometimes doing something as simple as consolidating all of your loans can result in a small monthly payment, some as low as $50. Whatever you do, you never want your loan to get defaulted though.

Debt Collection Rights

If for some reason you cannot make timely payments on either your credit card debt or student loan debt, you can be reported to a credit card debt collection agency or the Department of Education debt collection agency respectively. By law, debt collectors (of either department) can't threaten to repossess your home, car, or anything else valuable over the phone to compensate for your debt. But they can drag you to court and sue you. Here, if a judge finds you at fault then the judge can mandate that certain items be repossessed, garnish your wages, or collect your tax refund checks to pay off your debt if you don't the money to pay it off for example. Note that credit card and student loan debt collections work a little differently however. With credit card debt, each state has a statue of limitations—which simply means there is only an allotted time for which a debt collector can hit you with a law suit. For example, in Texas it's 4 years. A debt collector can still take you to court even after the statue of limitations is up—it's up to you to show proof that the allotted time has expired if you are taken to court. While you may get out of making the court forcing you to pay up, know that your credit report will be ruined for a good chunk of your life. Good credit is needed to make most big purchases that you will make as an adult, including a home and car. A student loan debt collector does not have any restrictions however and can sue you at any time.

Author Bio:
Mariana Ashley is a freelance writer who particularly enjoys writing about online colleges. She loves receiving reader feedback, which can be directed to mariana.ashley031 @gmail.com.