Debt Stress Falls, Is That a Good Thing?

I came across an article on the Associated Press website that is very informative and I’m sure will be appearing in many papers throughout our country. The article, “MOUNTAIN OF DEBT: America’s debt stress is easing”, talks about a recent poll they conducted that showed that people are worrying less about their debt problems.

Now this can be interpreted in both a positive and negative fashion. The optimist would say that this shows that people are confident we are heading in the right direction and now know that the worst is behind us. While the pessismist would say that people have just resigned themselves to the fact that its a hopeless situation and why stress about the inevitable. They would point to Detroit Lions fans, I think they’ve reached the point where the losing is just expected so its past the stress point.

The AP, always one to try and lift our spirits, sees the change in a positive light.

Debt-related stress was 12 percent lower this year than in 2008, according to the poll. “People now have some optimism that the worst is behind them,” said Paul J. Lavrakas, a research psychologist and AP consultant who analyzed the results of the survey.

The recession, the longest since World War II, is prompting Americans to take steps to get their finances in better shape. It’s led to a new found frugality that some believe will continue long after the recession ends.

“People are doing things that make them feel they are taking charge of their lives again,” said Patricia Drentea, associate professor of sociology at the University of Alabama at Birmingham, who studies debt and stress.

The reality of the situation though is that unemployment is still raising, home values are still falling, and its really hard to see the light at the end of the tunnel. Hopefully, that’s just because we’re coming around a bend.

Its also interesting to note their take on the politics of the situation. There was a dramatic shift in the numbers of the poll based on your political affiliation. Democrats saw a significant drop in their levels of debt stress, while Republicans saw a sharp rise. I guess a redistribution of stress goes along with President Obama’s redistribution of the wealth.

The problem with this is, that people right now are showing faith in what the administration intends to do. It’ll be interesting to note when there is some time in place to see actual results, if the leanings go the same way.

Chris Norton, 32, of Robbinsdale, Minn., said he’s much less stressed over debt.

“The debt that we have accumulated … it’s gotten knocked down to a reasonable place, where it doesn’t bring stress any more,” said Norton. “We have the state of mind that if we keep plugging in the right direction it will kind of work out.” Norton, who describes himself as an independent who leans Democrat, works at a shipping company and his wife is a server at a high-end steakhouse.

I think its fantastic that people are worrying less about their debt. As long as its based on some sort of action on their part. Stressing about things that are in your past and you have no control over is a waste of time. That however does not mean that you can just forget about them. In my mind the key to not stressing about your debt problems is to have a plan of action that you are following through on to reduce the debt. If you have a plan that your confident in to reduce your debt, and equally confident in your ability to follow the plan, then that is a very stress alleviating situation.