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Catastrophizing is a cognitive distortion where individuals imagine the worst possible outcome in any situation. This type of thinking can lead to feelings of anxiety and depression, as well as limiting behaviors. The podcast highlights how catastrophizing can occur in various aspects of life, such as relationships, work, and medical diagnoses like ADHD. It is emphasized that catastrophizing often stems from a tendency to focus on the negative and disregard positive outcomes. By building awareness of catastrophizing patterns and challenging negative thoughts, individuals can mitigate its effects and develop a more balanced perspective.