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Mental health problems more likely among people with unsecured debt

People with unsecured debt are three times more likely to have a mental health problem vs. those not in debt, according to researchers from the University of Southampton and Kingston University in the United Kingdom.

Depression, drug dependence, psychosis and suicide completion were also more likely among those in debt, although the reason for the association is unclear.

"This research shows a strong relationship between debt and mental health; however, it is hard to say which causes which at this stage," study researcher Thomas Richardson, BA (Hons), MBPsS, DClinPsych, of the professional training unit at the School of Psychology, University of Southampton, said in a press release. "It might be that debt leads to worse mental health due to the stress it causes. It may also be that those with mental health problems are more prone to debt because of other factors, such as erratic employment. Equally it might be that the relationship works both ways. For example, people who are depressed may struggle to cope financially and get into debt, which then sends them deeper into depression."

Researchers conducted a meta-analysis of 65 papers — including panel surveys, epidemiological surveys and psychological autopsy studies — examining the relationship between financial debt and mental health status. Data were available for more than 34,000 participants.

According to the study, there was a statistically significant association between unsecured debt and mental disorders (OR=3.24; 95% CI, 2.91-3.60), depression (OR=2.77; 95% CI, 2.5-3.07), suicide completion (OR=7.9; 95% CI, 5.21-12.0), suicide completion or attempt (OR=5.76; 95% CI, 2.97-11.18), problem drinking (OR=2.68; 95% CI, 1.40-5.15), drug dependence (OR=8.57; 95% CI, 3.82-8.47), and neurotic (OR=3.21; 95% CI, 2.64-3.90) and psychotic disorders (OR=4.03; 95% CI, 2.64-6.16). However, there was no significant association with smoking (OR=1.35; 95% CI. 0.66-2.77).

"Debt advisors should consider talking about mental health when speaking to members of the public," Richardson said in the press release. "Similarly, mental health professionals should ensure they ask about whether their patients are in debt. Further research is now needed to show exactly how debt leads to poor mental health, so that interventions can be designed to try and prevent those in financial trouble developing mental health problems and vice versa."

Disclosure: The researchers report no relevant financial disclosures.