How Debt May Lead to Long-Lasting Stress
In the US alone, the poverty rates are astounding. As a commercial society, we are always looking to buy things we don’t need, which leads to accruing debt as well as a higher poverty rate.
Poverty is one of the hardest things to overcome. Being stuck with lower income comes with a mental drain from stress. It can be a persistent problem that can be handed down the lineage of families. We believe from studies that poverty is highly linked to changes in mental behavior and monetary decisions. This means that the family provider will be stressed to find a financial solution to keep a roof on their head and keep them fed.
The debt associated with poverty can be extreme and continuous. Studies have shown that lower income households typically end up spending around 40% of their income paying off debt. People’s ability to focus on financial decisions and how to solve them as fast as possible. This causes them to focus on short-term income over long-term gains.
Correlation Between Debt and Stress
A charity set up an experiment which gave an accidental solution to the poverty problem. This allowed for lower income residence of Singapore to have their debts eliminated. The end result lead to higher contribution to the country and more working class people.
The longer they stay in debt, the harder it is to get out, which will lead them to experience mental and behavioristic changes from the stress. By eliminating the debt for those select habitants in Singapore, they noticed something. Families were happier, able to save, and were contributing to the workforce. As a caveat, they were able to donate to charity and help others in need, as well as starting to build their savings.
These days, one can lower or eliminate their debt using select debt relief services in your area.