How Debt Problems Can Affect Your Health

It Creates A Lot Of Stress

According to research done in 2018, 50% of Canadians agreed that their level of debt is causing them stress1. This has likely only increased as a result of recent economic pressures like the COVD-19 pandemic and runaway inflation. In fact, a recent study indicated debt that is caused by traumatic events or taken on out of need is particularly stress-inducing2.

Struggling every day to make ends meet or facing pressure from debt collectors is certainly stressful, but it’s not just the direct financial stressors that impact individuals. According to the Mayo Clinic3, common effects of stress include:

• lack of focus and motivation
• fatigue and sleep problems
• irritability, and anger

It is easy to see how these effects of stress can strain relationships, impact your ability to perform at work, and affect your health, causing even more stress.

1    (Ipsos, 2018).  https://www.ipsos.com/en-ca/news-polls/manulife-debt-poll-2018-07-27
2    Song H, Wang R, Bishwajit G, Xiong J, Feng Z, Fu H. Household debt, hypertension and depressive symptoms for older adults. Int J Geriatr Psychiatry. 2020;35(7):779-784. doi:10.1002/gps.5302
3    https://www.mayoclinic.org/healthy-lifestyle/stress-management/in-depth/stress-symptoms/art-20050987

It Can Contribute To Or Exacerbate Health Conditions

Not only does the stress caused by debt directly impact an individual’s mental health, but health professionals have also acknowledged that chronic stress can suppress the immune system4, making you more likely to get sick.

And there are other ways that financial problems can impact your health:

• When trying to pay debt, people often avoid or delay spending on things they need in order to meet minimum payments or satisfy debt collectors. This can include things like delaying or going without things like dental care, medication, and healthy food.
• Individuals struggling with debt often try to “work their way out” of the problem by taking on more hours or clients or working a second job, hoping that by earning more revenue they can pay off the debt. It's a good strategy, but if they don’t make enough extra income (net of related expenses like taxes) to pay off the debt, they can end up reaching an unhealthy level of mental and physical exhaustion or causing injuries. We see this a lot in older individuals who work in a physical job; a person’s body can only take so much.

Eventual outcomes from ignoring your physical needs can range from increased costs to deal with problems when they become unavoidable, to causing or exacerbating physical or mental health conditions.  

All that being the case, perhaps it isn’t surprising that a study5 conducted by a trio of researchers in the United States concluded that accumulation of unsecured debt can have important health implications and may exacerbate midlife health issues. This doesn’t just affect older individuals. A study from Northwestern University6 found that adults ages 24 to 32 who were insolvent reported poorer health in general. They also had significantly higher blood pressure, a risk factor for heart disease and stroke.

4    https://www.mayoclinic.org/healthy-lifestyle/stress-management/in-depth/stress/art-20046037
5    Trajectories of unsecured debt and health at midlife -  Adrianne Frecha, Jason Houleb, DmitryTuminc
6    The high price of debt: Household financial debt and its impact on mental and physical health Elizabeth Sweet, Arijit Nandi, Emma K. Adam, Thomas W. McDade

Taking Action To Deal With Debt Can Help

Based on the above, it should come as no surprise that many of the people who come to us for help with their debt are dealing concurrently with major health issues. Sometimes, the health issues caused the debt problem. Sometimes, the debt problem appears to have caused the health issue. In most cases, however, it isn’t clear which came first.

Solving your debt problems won’t automatically fix health problems, but dealing with your debt may put you in a better position to get your mental and physical health under control. According to the Canadian Mental Health Association7, the top recommendations for dealing with stress involve:

• talking about your problems, and
• taking steps to resolve the issue.

In fact, there is evidence8 that when debt is decreased, there is a corresponding reduction in mental health symptoms.

If you aren’t sure if you should be seeking help with your debt, consider whether you are experiencing any of the above issues. Or, check out our previous blog 5 Signs You’re Already in the Financial Sweatbox.

If you decide to seek help, tread carefully. CPA Canada has warned9 that “because many people are so afraid to ask for help until they’re drowning in debt, they may respond to ads for companies claiming to assist, but that actually are unqualified as financial advisers or are receiving kickbacks.” When that happens, the cycle of debt and stress can get worse. An LIT is an educated, licensed and regulated professional that can help you get a better understanding of your options and can refer you to other resources to help with underlying problems that may be impacting your debt. Even if you already have a plan to deal with your debt, a conversation with an LIT may still be a good idea, as we can help you make sure the option you are considering will actually fix the problem and tell you about other options you may not have thought of. These conversations are free and confidential, so there is no risk to booking a consultation.

7    https://cmha.ca/brochure/stress/
8    Amit N, Ismail R, Zumrah AR, et al. Relationship between debt and depression, anxiety, stress, or suicide ideation in Asia: a systematic review. Front Psychol. 2020;11:1336. doi:10.3389/fpsyg.2020.01336
9    https://www.cpacanada.ca/en/news/canada/2019-10-25-debt-health-impact#:~:text=Canada%2C%20it%20seems%2C%20is%20a,data%20compiled%20by%20Trading%20Economics.

Charla Smith & Company is a Calgary-based Licensed Insolvency Trustee, serving the southern Alberta region. We regularly help individuals who are dealing with stress caused by their debt. If you would like a free, no-commitment consultation to review your options, contact us.

Disclaimer: This publication provides general information and should be seen as broad guidance only. The information contained herein cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon this information without obtaining specific professional advice relating to your particular circumstances. Charla Smith & Company Ltd. does not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.