Financial industry, legislators urged to acknowledge ‘severe impact’ of debt on mental health

First published on Independent Financial Adviser

A new report has highlighted the impacts debt has on Australian mental health, which have only been accelerated by the COVID-19 pandemic.

Local debt support charity Way Forward’s report uncovered a number of key findings, including that those with savings of $1,000 and a manageable plan experience lower levels of stress and that 76 per cent of Australians worry about their finances regardless of their income.

Of those surveyed by Way Forward, 42 per cent said their finances impact their mental health daily.

The report also revealed that people earning below $35,000 and between $150,000 and $250,000 per year experienced the highest levels of stress about finances, which Way Forward noted indicates that a higher income does not reduce stress.
However, 83 per cent to 90 per cent said they are confident they can meet their obligations and get on top of their finances when a repayment plan is in place.

Read the full article, Financial industry, legislators urged to acknowledge ‘severe impact’ of debt on mental health, Independent Financial Adviser, 7 September 2021