With the recent economic crisis and the impact it has had on debt levels, you may have thought that it is no longer a problem just affecting the top 10-15% of income earners. You would be wrong. Many people are misinformed to think that the problem is limited to the wealthiest few. This is a common misconception, and it is perhaps since the truth is difficult to accept.
We all experience stress, but for some people, it can become a daily battle. On one end of the spectrum, you have those who can handle the pressure and handle their job or family situation just fine. On the other end, you are constantly stressed out and juggling bills, rent, and bills.
When you think about the devastating impact of debt on our lives, it can be easy to assume that the damage is purely physical. After all, debt can lead to bankruptcy and poverty and make it impossible for us to acquire the things we need to live healthy and happy lives. Some may even have to resort to the option of selling their family home or inherited property to clear off debts; companies like Crawford Home Buyers may come as a saving grace at this point. However, this may not be an ideal path for many, leading to a debt problem that seems unending. But while this may be true, there is another consequence of high-interest debt that is just as damaging. Today, we want to look at the relationship between debt and mental health and how debt can impact our emotional well-being.
When you face debt, you are faced with two important questions: How do I pay it off? And, how do I not pay it off? When you are in debt, you are in a constant struggle to make ends meet. You may have to make sacrifices to keep up with the payments. You may have to pull back on any luxury purchases and make do with less. You may have to miss out on special events or have to spend them on a budget. You may have to drive without a driver or rely on public transportation. It is all about finding the money. But there are also psychological aspects of debt that can lead to long-term mental health problems.
When it comes to debt, it seems there are no losers. Everyone involved loses in one way or another. The most recent statistic I came across was that over $1000 in credit card debt could cost you $7,000 a year. In a debt report from the National Institute of Mental Health, over 60% of Americans have a debt-related problem, with each person averaging $15,000 in debt.
As reported by the National Institute of Mental Health, the total national cost of mental illness in the U.S. is 6% of the $2.5 trillion we pay in taxes. That amounts to $210 billion every year. That’s a lot of money. I know it costs a lot of money to keep me alive, and I don’t live in the private sector. So, if you’re looking for a good reason to get out of debt, it might be debt mental illness.
A 2008 survey by the Ministry of Health and Welfare found that 23.5% of Japanese people have a chronic mental illness. A separate study by the European Union reported that 41% of the European Union’s citizens are in debt. Researchers have stated that mental health issues are often linked to the debt since they can lead to severe stress and other financial problems. People struggling with debt often turn to food and other forms of comfort, such as alcohol.
While there is no definitive research proving that mental illness is caused by debt, according to the National Alliance on Mental Illness, it is believed that mental health issues, including depression, anxiety, and bipolar disorder, can cause financial problems. In fact, according to a 2010 study of over 16,000 people, people living in poverty had twice the chance of developing a mental illness than those in the middle class.
The mental health of a country reflects its social and economic health, and the consequences of the economic conditions can be experienced by the mental health of the people. Countries that have gone into a deep economic crisis are also likely to have poorer people’s mental health. This is so because the effects of mental health problems are often not just limited to people’s mental health.