Avoid turning to high-cost solutions like payday loans or title loans, as they create a much worse debt trap. Also, avoid closing old credit cards, as this hurts your credit utilization ratio. Most importantly, avoid ignoring the problem.

The constant anxiety can lead to sleep disturbances, headaches, muscle tension, high blood pressure, and a weakened immune system. The body's prolonged "fight or flight" response takes a significant toll on physical health.

We treat money differently based on its source or intended use. A tax refund or bonus might be mentally labeled as "found money," making us more likely to splurge with it rather than use it to pay down debt, even though all money is fungible.

Closing a credit card removes that account's credit limit from your overall calculation. If you have any balances on other cards, your overall utilization ratio will instantly increase because your total available credit has decreased. It is often better to keep old, unused accounts open.