Tackle your debt head-on advises psychologist
Reckless spending has a severe impact on our mental health according to a city psychologist currently treating Scots for debt problems.
As the UK prepares for today’s Budget, and at a time when public spending cuts are affecting bank balances across the country, Professor Ewan Gillon is keen to raise awareness of the importance of dealing with debt.
Professor Gillon is Clinical Director of First Psychology Scotland which operates bespoke centres in Edinburgh, Glasgow and the Borders providing treatment for a range of mental health problems, including the psychological impact of debt.
“We get into debt for a range of different reasons, however our psychological make-up and personality are important,” he says.
“For example extroverts and those who are less likely to worry about the opinions of others are more likely to get into debt, and spending money is often a way of making ourselves feel better – a form of self-soothing. This is encouraged by countless adverts associating positive emotional experiences with particular purchases; buying then becomes a habit which meets a deep-rooted psychological or emotional need.
“The ‘debt cycle’ that can follow from this is one in which the guilt and anxiety invoked by debt can be soothed by habitual buying, which offers temporary feelings of elation, but is often quickly followed by further guilt and anxiety, creating a vicious cycle from which people find it very difficult to extricate themselves.”
And the reasons for spending can be complex. “Spending money can be a symbolic expression of power and success, which makes us believe we are popular and admirable,” he adds.
“For people who relate to money in this way, not spending may invoke feelings of powerlessness and failure, which can be highly distressing, and therefore financial debt becomes enmeshed with emotional pain.
“Some people get further into debt because they prefer to avoid uncomfortable feelings of anxiety and fear, so they continue to be able to spend freely by not acknowledging the reality of the situation. They do this to avoid the intense feelings associated with debt, and indeed avoidance is a common psychological coping strategy for emotional distress. But people need to proactively tackle their debt problems head-on as this ‘head in the sand’ approach can be dangerous for mental health in the long-term.”
Professor Gillon believes that some common thinking patterns - known as ‘cognitive distortions’ - actually encourage reckless spending.
He says: “Having an ‘externalised’ locus of control can leave us believing that we can do little to change our spending habits, and ‘all or nothing’ or polarised thinking can make it easy for ourselves to quickly give up trying to save. Also the fallacy of fairness may make us believe that we deserve to be able to spend more because others do so.”
Professor Gillon acknowledges that being in debt can also force people to look at their own resources and take responsibility for their situations in creative ways. Many more small businesses have started since the recession as those made redundant and ‘mumpreneurs’ become more enterprising in their efforts to survive the financial crisis.
He says: “Lack of options often forces us to focus on our most pressing need. This can help release us from our fears of failure and enable us to do things in the past we perhaps were too scared or too comfortable to do.”