Approximately 80% of Americans are in some kind of debt, according to a 2018 survey from college financial services websiteNitro, including 79.9% of Gen-Xers and 81.5% of Millennials. And while debt can be a part of life when it comes to mortgaging a house or paying for college tuition, it can also be a financial, and even a literal, death for many individuals.
A 2013 paper, published inClinical Psychology Review,revealed that people with personal debt are nearly eight times more likely to complete suicide, for example, than those without. Even in less extreme cases, those with overwhelming or unmanageable debt are more likely to struggle withanxiety,depression, anddrug and alcohol use, or just plain old-fashionedstress. But whatever way you slice it, debt burden is also a mental health burden.
The Type of Debt Matters
According to theNitrosurvey, the quality of life for those with debt from credit cards, student loans, medical expenses, and unpaid bills, in particular, decreased significantly compared to those with “good” homeowner’s debts, or no debt at all. On a scale of one to seven, with seven being highest, individuals with mortgages rated their happiness as a 5.3; people with medical expenses and unpaid bills, however, rated their happiness significantly lower (4.6 for those medical expenses and 4.5 for those with unpaid bills).
People who have mortgages also ranked highest in ability to overcome adversity compared to those with other kinds of debt.
Stress From Debt Impairs Cognitive Function
Having debt can be incredibly debilitating and stifling, demanding your attention and controlling many other parts of your life. More than 61% of Nitro’s survey participants reported that debt has prevented them from traveling, while 35.1% say that debt makes them unable to attend social events, and 18.5% can’t even provide basic necessities for their families.
Strained Relationships
What Can You Do Moving Forward?
Debt is not the end of your world, financial or otherwise, and there are many ways to decrease your debt stress and manage how debt impacts your mental health. See if you cannegotiate with your debt lenderor loan provider to reduce your monthly payments or lower your interest rate to an amount that doesn’t feel so burdensome. Considerseeking out a financial plannerwho can look at your debt and help you put together a repayment plan and a budget.
Our goal at Talkspace is to provide the most up-to-date, valuable, and objective information on mental health-related topics in order to help readers make informed decisions.
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