RTI International recently released a study on different types of stress and their impact on the health of a woman carrying a fetus to term. The findings were shocking: stress derived from debt was strongly linked to the premature delivery, more so than other major causes of stress. They reported:
“According to the research, women who reported being in debt were the most consistently at risk for preterm delivery. They were 9 percent more likely to deliver at 35 to 36 weeks of gestation, 14 percent more likely to deliver at 33 to 34 weeks, and 16 percent more likely to deliver at less than 33 weeks.”
This study joins an increasing body of research correlating high debt levels to unhealthy levels of stress. In another study that we profiled recently, First Command in their extensive two-year investigation of thousands of American families detailed in the report “Finding Financial Security in Uncertain Economic Times”, found those who have a financial plan are more likely to feel confidence, a sense of security, and be optimistic about their finances, among other effects. Among their findings were the following results:
- 40% of those who said they save the most on a monthly basis feel financially optimistic versus just 24% of those who save the least
- 50% of those respondents with the highest ratio of savings to debt felt financially optimistic vs. just 19% of those with the lowest ratio of savings to debt
- Just 4% of respondents with the highest ratio of savings to debt felt financially stretched vs. 28% among those with the lowest ratio of savings to debt. However, the relationship between savings to debt and feeling financially stretched was independent of income levels, suggesting that it’s not how much money a family makes, but rather how it manages money.
The First Command and RTI research both confirm what most of us know from our own experiences: having debt can cause stress. If you find yourself experience unhealthy levels of stress due to your debt, take heart…you can reduce stress just by starting with a few proactive actions:
- List your current debts and minimum payments
- Create a payment schedule, using snowball methodology
- Create a system for tracking your monthly debt balances and payments
Just getting organized and tracking your progress will help you feel more empowered and will help you deal with the stress of debt.
Scott Crawford is CEO of DebtGoal.com, a do-it-yourself system for lowering your interest costs and getting out of debt. DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.
Tags: debt reduction, DebtGoal, stress
