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Debts likely to cause more depression and psychological problems

Article by Paymex 9th Jun 2010 00:00

A new paper from the Nottingham School of Economics warns that levels of depression and mental illness will increase as a result of the growth in debts and money problems. The research found that those who owe money were more likely to suffer from psychological problems than those who did not, with the increase generally exacerbated when payments were overdue.
The study analysed data from the annual Families and Children Survey. In 2005 13% of respondents who reported debt problems and 17% of those reporting financial stress also reported mental health and psychological concerns. This compared to less than 3% of those who did not report debt or financial stress and were suffering from psychological problems.
The research also indicates that money owed to relatives, friends and money-lenders, is more likely than other forms of debt to cause stress, even where payments were up to date. The paper indicates that although there is an association between the incidence of debt and mental health problems, individuals vary significantly in their responses to financial problems.