Why The Cost Of Living Is Causing Insomnia And Loneliness

Welcome back to Dvorkin on Debt. This week we are talking about financial stress, the cost of living, and how it's impacting us. Welcome back, Howard.

Thank you.

This study found that 82% of Americans say the cost of living is now their biggest source of stress. Even more concerning, nearly 8 and 10 say that stress is affecting their sleep, and many report feeling isolated and lonely because of financial pressure. Are you surprised by just how many Americans are struggling with financial stress right now?

82% doesn't surprise me. I think it's hitting everywhere when you go to the pump and it used to cost $60 to fill up your car and now it costs $80. I will tell you that it looks to me like prices will come down there.

Food prices maybe not so much. And things that are being imported probably not. I've seen this pattern for more than 30 years. Examples like the crash of 87, the.com bust, the great recession, costs go up and at some point our wages make up and catch up to the price of inflation.

At some point, survival debt is replacing discretionary spending, meaning they're using their credit cards to pay for these extra expenses. And they're not extra, but their extra money, that extra $50, $100 a week that's going to pay for their food and their gas, they're putting it on their credit cards. And eventually, the credit cards are going to say, "We're tapped out. You can't come. You can't use us anymore." And the study confirms what we see as counselors every day that problems are happening. People are very stressed out because of it.

You've spent decades working with people dealing with debt and financial hardship. When you look at findings like these, linking money problems to things like insomnia, anxiety, isolation, what goes through your mind? Have you seen any of these effects firsthand with your clients over the years? Our companies have counseled and helped over 13 million people over the last 33 years.

That's a lot of people and that's a lot of helping. And if you think it's a lot of situations.

It's a lot of situations, but you have to have patience and you have to always do the right thing and you really have to always give the right advice and understand that one size doesn't fit all. Debt is just a number on a piece of paper.

However, it doesn't define you as a person. And that's the important thing to realize.

Clients losing sleep worrying about bills is not good for many, many reasons. Number one, it's going to impact their ability to work and earn money. It's also going to impact their relationships they have. The number one reason people get divorced in this country are financial pressures. People isolate themselves from friends and family because they're stressed out.

They don't know what to do. They don't know what where to turn to get help. And the reality is asking your buddy who's in the same financial situation that you are probably not a great idea. But going through and asking somebody who does this for a living probably a very good idea. The study reflects real stories from real people. People are hurting out there. Financial stress becomes emotional stress and people get impacted by finances. Money is intertwined into our society so much these days that it's going to impact you. You know, if you can't go and support your kids or you can't buy the right present because of financial challenges, if you can't put food on the table, which a lot of the time is a challenge that's going to impact you, but there is a way out.

Well, it sounds like people are getting themselves into a really vicious cycle.

They're stressed out about money, so they cut back on social activities just to save cash, and then they become isolated, lose sleep, and that emotional strain makes it even harder for people to stay on top of their finances. For someone watching this right now who feels completely overwhelmed and stuck in that cycle, where do you suggest that they begin?

You can't hide bills from loved ones. If you have a problem, it's a shared problem. And you have to be honest and truthful. And people for whatever reason, pride, ego, embarrassment, they avoid asking for help. And by the way, people come to our offices at death.com and they talk to us and it's a no shame area. I mean, we don't care that you the reason why you got in debt other than you're in debt and we need to figure out how to get you out of debt.

And shame and ego and pride, very big emotions, but you need to pick a path to get out of debt. And sometimes you need some help.

So, let's talk about solutions. If financial stress is keeping someone awake at night, causing anxiety, making them feel like they're carrying this burden alone, what practical steps can they take right now to regain control and start moving forward?

Listen, professional help changes everything. Financial stress is a health crisis for your wallet. Professionals provide structure and guidance. You have to first regain control of your cash flow. That will reduce your stress and frankly the uncertainty going forward.

And if you are feeling stressed, you're not alone. Visit debt.com for a lot of advice on how to get out of it and how to stay afloat. We'll see you next time.