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Debt, no matter for what reason, comes with more baggage than the monetary equivalent. It affects different people in different ways, but the one fact across the board is that its effects are largely adverse. In the U.S, among 10 loan recipients, roughly 2 carry student loan debt amounting to $50,000 or more.
Compounded with other money-demanding life issues like mortgages, medical costs, car debt, etc., it becomes easy to see how student loans, and debt in general, can affect happiness. Here are 9 ways student loans affect Millennials happiness.
Denial
Some Millennials remain in denial. They avoid money issues, looking at bills, picking calls from lenders, meeting creditors, and such. The relief, however, is short term as the reality catches up soon in the form of penalties and interest.
The amount owed most likely increases which makes matters worse, leading to further denial which sets the foundation for a vicious cycle unless drastic action is taken.
Anxiety and depression
Research conducted by the University of Nottingham found a strong relationship between the debt carried and an individual’s level of anxiety and depression. The general outlook of those indebted was a lack of hope as if being in a maze with no apparent exit.
Depending on debt tolerance, some handle it better than others, but for the unlucky few, things quickly graduate from mild worry to acute anxiety finally culminating in fully fledged depression. At this point, things dip further since the individual is unable to function optimally to do anything adequately worthwhile to deal with the debt.
Limited range of choice
Millennials judge the quality of life not through substance like the majority of the previous generations, but through the experiences accumulated. With student loans hanging over their heads, there is not enough money left to fund the much desired exotic experiences.
To add fuel to the fire, social media actualizes pressure from those who have enough to enjoy dream experiences, and the debt-laden Millennial, consequently, feels left out and unable to live life as desired leading to unhappiness.
Routes of escape
To run away from it all, albeit momentarily, some Millennials turn to vices to cope. Mostly alcohol and hard partying. In this manner, both their physical and mental states deteriorate. They are unable to put in as much effort at work, or in life which curtails access to opportunities that could ameliorate the situation such as a promotion, or building relationships.
Playing the blame game
With stress and anxiety, relationships which have a significant bearing on one’s happiness deteriorate. The probability of snapping at a relative, a close friend or even a partner increases due to the elevated state of irritability.
Things may further go south in the case of a spendthrift family member or partner who may end up being wrongfully blamed for playing a role in making it harder to repay the loan. Ultimately, the relationship in question is jeopardized.
Resentment
In the marital sphere, it is a widely known secret that money is among the top factors leading to divorce. For a Millennial couple in which both spouses carry student loan debt, the one with lesser debt may end up resenting the other.
This is not unique to spouses. A Millennial may resent parents for not explaining the effects of study loans adequately; the employer for not paying enough or offering a promotion soon enough; dependents such as disadvantaged family or community members, etc.
Regret
Debt raises the chances of looking back in regret at previous money decisions. A Millennial may feel that he/she should have explored other options: looked harder for a scholarship, been patient enough to land one or applied for aid, etc. In a nutshell, a crying-over-spilled-milk scenario arises which leads to getting stuck in the past. As a result, life in the present is affected especially emotionally and performance wise.
Health complications
Mounting pressures with no end in sight crush the morale for living and can lead to conditions such as increased blood pressure which may result in hypertension.
With health complications in the picture, achieving happiness becomes even harder for the typical Millennial in debt. After all, physical pain and happiness stand on opposite sides of the spectrum. Research by The Northwestern University uncovered a correlation between participants’ debt loads and elevated blood pressure.
Better health in the long run
Despite the study finding a relationship between debt-load and increased blood pressure; surprisingly, they also found a significant opposite effect where higher student loan debt resulted in better overall health and happiness.
The study proposes that this is so for cases in which the debt instigates a bigger drive to attain a higher quality of life which positively impacts physical and emotional health. A second proposal was that for some Millennials, student loans reflect a better social status due to the direct association with higher education.
Student loans, as does all debt, comes with negative impacts that every intending beneficiary should comprehend before committing. The good of it is that if one rides the tough patches and pays it off, along comes relief, a deep sense of achievement and most importantly, freedom.