Debt is bad for more than just your finances

Carrying credit card debt isn’t just bad for your budget. It may also affect your health.

The stress of carrying card debt through adulthood is linked to poor health, including joint pain or stiffness that interferes with daily activities, a recent study from the University of Missouri found. Beyond the worries about repaying debt, one reason for poor health may be that people with high debt have little money left to pay for resources that protect their health, the study said.

Here are some questions and answers about managing credit card debt:

What is the best way to pay down credit card balances?

Because credit cards typically charge double-digit interest rates, most financial advisers agree that you’ll save the most money if you focus on paying down the card with the highest interest rate first.

Here’s how it works: Make the minimum payment on all of your cards to avoid late fees, but put any extra money you have toward the highest-interest balance. When that balance is paid off, move on to the next card and so on.

How can I avoid overspending during the holidays?

Shoppers expect to spend almost $1,000 this season on gifts, food, decorations and other holiday-related purchases, according to the National Retail Federation’s

2021 forecast.

But Melinda Opperman, president of Credit.org, a nonprofit financial counseling agency in Riverside, California, said that many clients have told her they are still paying off credit card bills from last year. She suggests focusing on enjoying time spent with loved ones during the holiday season rather than buying pricey gifts. “It’s more about the memories of the time spent with family and friends,” she said.

Benjamin Jacobs, a fee-only financial planner in Athens, Georgia, recommends breaking

out the credit card only for items you know you can pay off within a month.

As for the holidays, a basic step to avoid overspending is to make a plan before shopping for how much you will spend, said Abigail Sussman, an associate professor of marketing at the University of Chicago Booth School of Business who studies how consumers make decisions.

“Setting a low spending goal can be helpful,” she said.

TILL LAUER/NEW YORK TIMES The stress of carrying credit card debt is linked to poor health, including joint pain or stiffness that interferes with daily activities, a recent University of Missouri study found.