Deterioration of mental health associated with difficulty escaping problematic debt

Mental health is an important element of people’s ability to manage an individual’s debt. Credits: Shutterstock

According to a newly published study, mental health is an important element of people’s ability to manage an individual’s debt by following debt advice.

As the cost of living crisis worsens, millions of people are preparing for financial distress and increased debt, with one in four currently experiencing it in the UK. Mental health issuesFor the first time, a study was conducted to investigate the impact of mental health on compliance with debt advice.

Recently published studies International Journal of Social PsychiatryWas led by researchers at the University of Aberdeen Business School and Queen’s University Belfast.

We investigated the relationship between the mental health of individuals applying for formal debt settlement mechanisms, such as the Scottish Trust Equivalent Personal Voluntary Agreement (IVA), and the decision to follow debt advice.

A total of 86 participants completed a study measuring mental health, recalling information discussed when booking debt advice, attitudes towards IVA, and levels of trust in advisors.

Their compliance with the given guidance was measured after 10 weeks. Researchers have found that participants suffering from poor mental health are less likely to follow the advice they receive. Better mental health..

Dr. Nicole Anderick, a researcher at the University of Aberdeen and co-author of the report, said: ..

“By working with a financial institution, we rarely investigate individuals seeking debt advice who are said to be eligible to apply for a structured repayment plan that runs for five years before the remaining debt is amortized. Opportunity was given.

“Debt can lead to poor mental health, but we have shown that poor mental health also correlates with the difficulty of escaping problematic debt. In fact, these participants were provided. I know my mental health was poor before deciding not to receive any advice, not as a result of not following this particular advice.

“Sure, our study shows that people with very serious debt problems have mental health. General populationRegardless of whether they adhere to debt advice.

“This means that those who need the most advice are unlikely to follow it. As a result, mental health should be considered when advising people with debt problems. I have.”

The research team consisted of Dr. Anderick and Professor Aidan Feeney, Vice President of the Faculty of Psychology, Queen’s University Belfast.

Professor Finney said, “Even though many people experience problem debt without their own negligence, there is a lot of stigma in problem debt. Unfortunately, the experience of people with problem debt is: It has not received enough attention from researchers and policy makers.

“A key contribution of our research is to identify how particularly important financial decisions about entering into formal debt settlement mechanisms are associated with poor mental health. By level debt.

“that is debt It can itself cause poor people mental healthThe current economic situation can put thousands of people in a cruel debt trap. There, the mental illness caused by debt makes it difficult to make appropriate financial decisions on how to return to financial soundness.

“In addition to advice on the mechanisms they have available, people with problematic debt need help as they make very difficult decisions among the available options.”

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For more information:
Nicole Anderick et al., Deterioration of mental health is associated with worsening personal debt problems: A study on compliance with debt advice, International Journal of Social Psychiatry (2022). DOI: 10.1177 / 00207640221083205

Quote: Deterioration of mental health associated with difficulty in avoiding problematic debt (May 9, 2022) https: // Obtained from May 9, 2022.

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Deterioration of mental health associated with difficulty escaping problematic debt

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