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Americans Name Money As Number One Factor Causing Stress

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A survey commissioned by the American Psychological Association found that 73% of Americans single out money as the number one factor that affects their stress level. Thirty-three percent said money worries are a very significant factor contributing to stress.

If you’re feeling stressed about money, how can you solve your money problems and get financial stress under control?

Tips to ease financial stress

1. Seek professional help. If financial pressures are getting you down seek professional help. Call your Employee Assistance Program (EAP) for information and referrals. Your EAP counselor can help you assess what issue(s) may be contributing to your money problems and refer you to the proper resources to help you overcome the problem(s). These resources may include a financial planner, debt consolidation agency, mental health/substance abuse assistance, or other community services.

2. Don’t let credit card debt break your back. Consumers who run up high credit card balances and then regularly pay only the minimum amount due each month are paying very high prices for goods and services. The key to relieving financial stress is to get out of debt. Too much debt eats away at your take-home income and undermines your financial future.

3. Eliminate credit card debt. Borrowing money for an asset that accumulates value (e.g. family home) can be a good thing. All other debt should be eliminated. Examine the interest rates you are paying on your debts and pay off those with the highest interest rates first.

4. Curb your spending. For most people, overspending and having too much debt is the cause of money problems – it is not because they are not making enough money. Learn basic money management skills. Commit to living within your means.

5. Keep money in reserve for the unexpected. Unexpected financial expenses hit all of us from time to time. Make sure you have a reserve to cope with these out-of-the-blue expenses. Having money in reserve will give you peace of mind.

Signs that you need financial assistance

• You are borrowing to meet regular expenses, such as food and utility bills.
  
• You are barely able to make the minimum required payment on bills, but continue to charge.
  
• You are using one form of credit, such as a line of credit or a debt consolidation loan, to make payment on other debts.
  
• You are using 20% or more of your take home income to pay credit card bills and personal loans (excluding mortgage payments).
  
• Your revolving credit cards are charged to the limit.
  
• You are behind on credit payments and receiving calls from creditors or collection agencies.
• You are bouncing checks.
  
• You have no cash reserve.