Debt Takes a Toll on Borrowers' Health

By Michelle Vullo Pastor

From mortgages to student loans and credit cards, three out of four Americans are wallowing in debt. With the average personal debt load, not including mortgages, exceeding $19,000¹, Americans are paying a very high price in the midst of a brutal recession. Debt isn't just a financial challenge, it's a burden that places an enormous strain on our mental and physical well-being.

Debt affects all aspects of our life. Just worrying about losing a job or your home can cause serious medical conditions, including digestive problems, muscle tension, insomnia, high blood pressure, weight gain, migraines, anxiety and depression. When people are stressed, they often deal with their stress in unproductive ways. Stress can affect our ability to think clearly and trigger cravings for unhealthy food or cigarettes. Others may try to escape their problems through alcohol, drugs or gambling. Stress can also cause debtors to lose interest in or motivation to maintain positive behaviors, such as spending time with friends, exercising, getting enough sleep and eating right.

Destructive behaviors like these can also damage interpersonal relationships. Money problems are the leading cause of divorce. A large number of people who are worried about their debt also report a deteriorating ability to be a good parent.

As a financial counselor, I often see noticeably stressed clients. Some are visibly shaken, some are crying, and some complain of difficulty sleeping because they can't stop worrying. Others complain of stomach aches and headaches they believe are caused by stress. Some confess that they've taken sick days because they aren't sure how else to handle the stress. I've also seen clients who are divorced or experiencing problems with their spouse because of financial constraints.

Financial woes can also affect a person's ability to perform at work. I've had many financially distressed workers confide in me that they use time during the workday to tend to their personal finances. They may often take time to speak with co-workers about dealing with financial problems, field phone calls from creditors, pay bills, or speak to a lender about a new loan on company time.

Because of the physical stress associated with debt, financially strained employees often take more sick days than their co-workers, further exacerbating workplace productivity problems. There's a long list of negative job productivity factors associated with personal debt stress, including:

• increased consumption of alcohol;
• difficulty concentrating on the job;
• continual feelings of fatigue;
• increased sense of irritability;
• negative views of peers, clients or the organization;
• loss of confidence in personal abilities;
• feelings of hopelessness; and
• general feelings of apathy toward work that was once considered challenging and exciting.

In general, workers with money problems are trouble for employers because they bring their personal financial concerns to the workplace. The cost to employers who provide health insurance for workers is also higher for debt-strapped individuals, who tend to utilize medical services more often than their counterparts.

To become debt-free, you need to establish a budget and stick to it, pay down high-interest debt, build a cash reserve, and learn to live within your means. American workers need to be responsible for their personal finances, including long-term savings plans such as retirement.

Footnote

¹ "Escaping the Burdens of Debt Stress," Catherine Guthrie, Experience Life, March 2009