It’s hard to put a value on peace of mind, but a growing body of research indicates that debt has dramatic costs on our mental well-being. In November, 2008, RTI International 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, 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
Other studies
- In an April, 2006 study of women and stress, Health.com reported that the number one cause of stress among women (affecting 33% of respondents) was their financial situation. The number one financial stress was being in debt.
- In an April, 2008 AOL/AP study on the effects of debt found that stress related to debt has increase dramatically over time with 44% of respondents reporting migraine headaches from debt (up from 15% in 2004) and 29% reporting severe anxiety (up from 4% in 2004).
These studies 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
DebtGoal.com helps users get organized and create and track to a debt reduction plan. Just by taking this simple step, users feel more in control of their finances and a reduction in stress.
Scott Crawford is CEO of DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs. 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, debt and health, debt reduction, health, stress
