We all know that money problems aren’t only about money. Financial problems have far-reaching impacts in many aspects of our lives. For example, we know that financial problems prevent people from doing a good job at work. We also know that financial problems are one of the top reasons couples fight. But can it really be proven that debt impacts your health?

To find out, I contacted a few folks who have recently repaid their debt and asked them if there were health benefits to debt repayment. The responses flooded in! Here are a just few:

“We are healthier as now we can afford better quality foods (more fruits, leaner meats, we can even eat salmon which is our favorite fish! etc)”

“I am less stressed (only good stress - not financial stress!!!). I am much healthier.”

“It is amazing how the added stress of bad financial decisions can affect ones health, but thanks to (debt repayment) I do exercise more and eat healthier.”

“I got benefits, take care of myself, feel better about my body and my mind.”

“I am happy to say I finally have health insurance through my work which I couldn’t afford before with all the debt I had.”

“I feel pretty good, a little over weight (20 lbs), but all in all I’m in pretty good shape. I do many things now that I wouldn’t have dreamed of before I repaid the debt.”

“In the sense that I feel less worried about money and the future, I’d say I’m healthier!”

“I have managed to save money up for health equipment and other exercise habits like a gym membership.”

“I am healthier, I exercise, and I feel I have more free time.”

“My life has changed my life for the better. It had got to the point where I was so stressed from work and debt I started smoking. I stopped smoking two years a go. I am less stressed and healthier.”

“I sleep better!”

“You may not think so, but carrying a bunch of debt also affects your health and mental well being. Paying off my debt has allowed me to walk and talk with more confidence.”

“I feel I am unbelievably more emotionally healthy than I’ve ever been before. I no longer lose sleep at night or have panic attacks from the fear I carried before.”

While debt repayment won’t guarentee that you will never get sick, it clearly has the potential to benefit both your physical and emotional health.

Are financial problems impacting your health? Or, has debt repayment improved your emotional and physical well being? If so, please share your story through the comments section.

I have the pleasure of reading a lot of great letters from people who have successfully repaid their debt. Recently, I received an email from Sandi in Massachusetts with her 3-year personal debt repayment journal attached. Following are some excerpts from Sandi’s amazing journey (her entire journal is incredibly inspiring to read, I wish I could share it all!) Thank you Sandi for sharing your story—you are awesome!

OK, here we go. I am 54 years old and, after making some pretty terrible decisions I find myself deeply in debt and renting an apartment. So, what am I going to do about it? I have lived as if I had all the time in the world in which to recoup from these mistakes. Gosh, but they do add up! Now, I am in debt for over $48,000 and if I continue this way the debt will continue to climb! EEEEEEEK

I have become a whiz at budgeting! I have a spreadsheet that I keep every month that shows me what I need to spend before I can even consider the extras. I feel prepared to go out and face a future where there is gain instead of loss!

As a consumer, it is important to understand your rights and responsibilities. This is particularly true if you fall behind on debt payments.

The Fair Debt Collection Practices Act (FDCPA) outlines some hard and fast rules that apply no matter where you live in the U.S. For example, the FDCPA states that a collector may contact you only between 8 a.m. and 9 p.m. Collectors are also forbidden from lying or engaging in unfair practices, such as communicating with you by postcard.

In addition to the Federal laws, each state sets laws as to what, and how, a creditor can collect on a delinquent account. Some states permit a creditor to garnish a debtor’s wages; others don’t (like Texas). Some states exempt just about all assets a debtor has from seizure by a creditor to satisfy the payment of a debt. Other states can force you to sell some of your assets to satisfy a judgment.

While I don’t recommend packing your bags and moving to Texas to avoid potential wage garnishment, I do recommend knowing what is and is not possible in your state of residence. Unfortunately, learning about your state collection laws is not as easy as it sounds. There are a few law firm Web sites that offer a breakdown of state laws; however, most have disclaimers stating that the information may not be accurate or complete. Laws change constantly making it hard for anyone to maintain a list that is up-to-date.

The Federal Reserve has the role of protecting consumers (though Congress is currently considering the creation of a new Consumer Financial Protection Agency) and their Consumer Help Web site contains some good general information about consumer issues. For more specific information about your state laws, you can research state statutes related to debt collection or you can contact your local consumer protection office. A list of state and county consumer protection offices can be found on the Federal Citizen Information Center’s Web site.

For more on this topic, also see:

Consumers ask about debt collection & their rights
Dealing with someone else’s collection calls
How to resolve three common consumer complaints

My turn for a disclaimer: I am not an attorney. For legal advice, it is always best to seek legal counsel.