If someone asked you how you manage your money, you would probably mention something about a monthy budget or balancing your checkbook..or choosing to save before impulsive spending- any or all of those things.

The truth is, we all know how to manage our money. We just don’t.

Recent surveys record the average American debt at more than $7,000 per household. We are spending more, saving less, and creating great financial anxiety for ourselves in the process. If we know what it takes to be financially sound and free of this anxiety, why don’t we do it?

The answer to that question may relate directly to our own state of mind. People who suffer from depression and anxiety are almost three times more likely to be in significant debt. It’s possible that when we are anxious or depressed, we create a disconnect between our spending and our means, creating debt. The rush of purchasing something new and the initial gratification create a distraction which is both pleasurable and habit- forming. “Retail Therapy” is of course, not real therapy, it’s just a band-aid on a much bigger problem.

Those of us caught up in this cycle of spending might find ourselves deep in denial about our true financial situation. The mountain of debt seems to grow bigger and bigger each day. We live with the anguish and anxiety this growing debt creates, yet we feel overwhelmed at the thought of taking control and fixing the problem. We also fear what life would be like without the freedom to purchase what we want and provide that quick gratification we have become dependent upon. We feel lost, afraid, and unsure of how to change.

The good news is that we can take control of our own financial situation, but we must get to the root of the real problem in order for this change to be effective. When we start to see that our overspending relates to our state of mind, we can focus our attention on fixing the real problem- and find financial security in the process.