Debt may not be responsible for emotional trauma

Emotional problems caused by stress and loneliness are some of the biggest contributors to debt, according to new reports.  This is breaking news for many, because until now, we have been told that debt, not our emotional state, is societies underlying problem.  However, new reports are challenging this theory.

The industry has invested ample resources into studying the results of debt.  Several reports attribute divorce, depression, suicide, and other emotional problems to debt.  Now reports state that the situation may be a catch22, with emotional problems and debt being woven together in a more complex relationship.

New information is suggesting that we are going into debt because we are stressed, or lonely.

A survey released by PARSHIP.co.uk, the UK’s leading scientific online dating service, suggests that loneliness is the biggest cause of stress for singles than by credit card debt, work pressures and global warming.  An average of 28 nights of sleep per year is lost through worry about loneliness.

By comparison, only one fifth (18%) of singles, cited financial problems, including credit card debt, as a cause of stress.  And, 18% blame on work. Only 7% cited family problems, and 3% illness.

Dr Victoria Lukats, psychiatrist and PARSHIP.co.uk’s relationship and dating expert commented,
“People are more likely to associate stress and its symptoms with debt and work pressures. However, the figures speak for themselves. Whilst many people see being single as a positive choice statistics show that the majority – 60% of UK singles – would prefer to be in a relationship and are looking for that special person to share their life with. Scientific studies have shown that married men live longer than their single counterparts. This may be in part due to lower stress levels and the comfort that being in a long-term relationship can bring. In addition, people who have sex at least twice a week have also been shown to live longer, once again highlighting the benefits of being in a relationship.”

“Unfortunately it’s more headline-grabbing to say ‘£1 billion worth of debt is causing misery for thousands’ when in fact loneliness is causing misery for six million singles.”

The theory of loneliness and relationships as a contributor to debt is not a new one.  Recent reports have stated that plastic surgeons are combating the problem of people hoping that plastic surgery will help them preserve flagging relationships. Many plastic surgeons are refusing to do these procedures, because a relationship cannot be saved by the way a person looks.  However, the statistics show a dramatic increase in the number of people who take out loans to cover plastic surgery.

Other reports state that many people are borrowing money to maintain a certain lifestyle and image.  Debt charities like Citizens Advice have long cited ‘lifestyle’ as a factor that causes many people’s debts to spiral out of control.  While it may be fun to ’step out’ once in a while, many people are living beyond their means, both for their jobs, and to secure relationships.

This type of debt accumulation is predominantly female, although a growing number of men are going into debt to create a sexy, or desirable, image.

Recent reports measured the impact of therapy shopping.

Shopping for pleasure or to reduce stress is a contributing factor to increasing personal debt in the UK.  Millions of consumers shop at least once a month.

Retail Trust reports that 25 per cent of the population use shopping to relive stress.  Younger people are most likely to add to their debt, with 18 to 24-year-olds most likely to accept the practice of retail therapy.  The concept of shopping to improve a look, or image, especially after a break-up is not uncommon.

Men are more likely to be in debt than women.  Almost one third accumulate a debt that equals 20 per cent of their current income.  This goes against conventional thinking, which assumes that women are more likely to use shopping as a stress relief tool.

The research also states that employees in the retail and service sectors are highest in debt, with eight per cent accumulating debts that total more than  71 per cent of their annual income.

Nigel Rothband, chief executive at Retail Trust, highlights these workers as most in need of financial advice and guidance.

"It is estimated that an astonishing one in five people in Britain work in the retail industry and the survey results reinforce the fact that there are a large number of people in need of help and advice," he told Retail Bulletin.

This raises concerns over whether the government’s new educational programs are thorough enough to cover the underlying problems of debt, or if they limit their programs to teaching people how to budget.  No matter how efficiently a person budgets, if they are unable to handle stress or grief, then they are likely to go into debt, according to this new research.