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They say that money can’t buy happiness,
but anyone who believes that has never worried about putting food on the table
or keeping the lights on for their family.
The thing is, money certainly can buy
security, and it’s a lot easier to improve your mental health when you aren’t
preoccupied with your family’s safety.
Financial insecurity isn’t easy to talk
about, especially when you add mental health issues into the mix. There’s still
a stigma surrounding mental health and debt that stops many people from sharing
their struggles. That sort of silence can make you believe you’re the only one
carrying this burden.
But you aren’t! Financial anxieties and
depression are more common than you think. In the aim of lifting the taboo,
here are three facts about how mental health and finances today, proving that
one is inextricably linked to the other.
1. Direct Payday Loans Linked to Poor Mental Health
One study out of the University of Washington
shows that people who use direct payday loans are 38 percent more likely to
report poor mental health.
Their research concluded that borrowers’
mental health might be explicitly harmed by the stress of meeting their short
terms.
Payday loans direct lenders often charge
high interest rates on small dollar loans. These loans can be challenging to
repay because they’re due back by your next payday. The study show borrowers
feel their mental health worsen when they can’t hit this due date.
That said, researchers didn’t condemn all
short term loans. Some borrowers find relief through these potential payday loan alternatives that
provide cash due back over weeks or months.
2. Debt Increases Risk of Depression
Dealing with debt is no picnic. But for a
lot of people struggling with their finances, it’s the root cause of their
depression.
According to the UK’s Money and Mental Health Policy Institute, 86
percent of people said their financial situation exacerbated their mental
health. Their findings show that people with debt are twice as likely to
develop major depression, and the more debt someone carries, the more likely
they’ll struggle with their mental health.
3. Depression Can Lead to More Debt
Dealing with depression and debt at the
same time is like fighting a two-front war. It can be hard to find the mental
capacity to handle your financial issues when you’re depressed.
That’s because depression can affect your
problem-solving skills, memory, and planning abilities. As a result, the Money
and Mental Health Institute found that depression often causes Brits to make
decisions that get them into deeper debt.
Of the 5,500 people surveyed by the MMHI,
93 percent said they spend more than usual when in a depressive episode. Nearly
three-quarters put off paying bills, and 56 percent take out personal loans
that they wouldn’t otherwise take out.
If depression makes managing your finances
harder, and worrying about debt makes your depression worse, it can feel like
you’re caught in a never-ending cycle.
The Takeaway
Mental health and money problems are common
concerns for a lot of people. Together, they can cause a downward spiral that
can be difficult to stop, especially when you think you’re the only one having
these issues.
But if these stats prove anything, it’s
that you aren’t alone. Hopefully, you find bravery in these numbers to open up
about your own mental health and financial issues to find some help.
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