For some Americans, debt isn’t just hurting their finances. It affects their health.
In a recent survey of 2,000 consumers by financial services company Achieve and Money.com, some borrowers said their debt pushed them to seek treatment, skip medication or fight anxiety.
Most borrowers are aware of the financial costs of borrowing, such as compounding interest, late fees and potential damage to your credit score. But the survey suggests the burden of debt — whether it’s a mortgage, bank loan, student loan, medical debt or credit card balance — doesn’t stop in your bank account. It can play a role in your physical and mental well-being, too.
Some borrowers postpone or skip medical care
Health decisions should take precedence over money matters. But sometimes, borrowers are forced to put their debt above their physical needs: 14% of respondents said they delayed or did not receive treatment in the past year because they could not pay their debts, while 8% said they skipped or did not take the prescribed amount of medication for the same reason.
As a borrower’s debt burden grows, paying it off can feel overwhelming. That’s especially true if you’re dealing with high-interest loans that quickly add up, or if you have an income that can’t keep up with both your spending and your debt payments. For example, the number of respondents who say they have delayed or missed treatment because of their debt rises to 25% for those with at least $20,000 in unsecured debt.
While just 9% of respondents with incomes of $150,000 to $200,000 are behind or in debt treatment, that number nearly doubles to 16% for those earning between $75,000 and $100,000. This doubling suggests that even a six-figure salary is no longer a reliable hedge against the trade-off between physical health and debt obligations.
If you’re too tired to open email because of debt worries, scheduling a doctor’s appointment is way down the list of priorities, says Sophie Benander, head of wealth management growth at employee benefits and financial planning firm Sentinel Group.
“This also happens when we see people taking it easy or skipping medication because it feels like it’s one thing they can’t afford,” he adds.
Borrowers face bad debt consequences
The emotional and psychological effects of debt also affect the health of borrowers.
Almost half of respondents said that thinking about their financial situation caused them to have trouble sleeping, worry or feel depressed. More than 40% of respondents said that their money problems led to difficulty concentrating, and feeling angry and stressed. The negative effects of debt can manifest physically, too: 38% of respondents reported headaches or migraines when considering their finances, while 44% said they faced muscle tension or body pain and 35% have experienced digestive problems and nausea.
In all cases, negative outcomes are higher among respondents who say they have unmanageable debt – and often the difference is extreme. Just over one-third (36%) of debt-free respondents say thinking about their finances makes them tired, but that number rises to 46% for people with manageable debt and a whopping 75% for those with more than manageable debt.
“Credit doesn’t just live on a spreadsheet,” said Benander. “It stays in your body, it usually feels like a weight you wake up with and go to sleep with.”
When debt feels out of control, it’s easy to become numb and avoid it, but that deepens shame and depression, Benander adds. The survey results support that: Nearly three-quarters of respondents with unmanageable debt say they feel ashamed or embarrassed about their finances, and respondents who have seen their debt increase in the past year are significantly more likely to report feeling ashamed.
Coping with debt problems can take a toll on the body: 35% of respondents with unmanageable debt said they used alcohol or other substances to cope with financial problems, while 60% said they had turned to stress eating or loss of appetite.
More from Mali:
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