Financial stress that’s gotten out of control can have health consequences.
Mental Health Issues
“People who have higher financial stress are at greater risk for anxiety disorders and clinical depression,” says McCoy.
Research suggests that financial strain — basically, the inability to cover expenses with available resources — is significantly associated with depression.
A review of 40 studies concluded that financial stress was linked with a greater likelihood of experiencing depression across all income levels, although this link was stronger for people with low incomes.
An online survey of over 1,600 adults found that 42 percent reported financially related panic or anxiety attacks. Younger generations such as Gen Zers and Millennials were particularly affected, with nearly half reporting these attacks — nearly double the rate found among Baby Boomers.
Shame and guilt can creep in due to financial stress, says McCoy. “Clients in financial therapy often describe feelings of unworthiness or guilt around unpaid debts or perceived poor financial decisions, making mental distress even worse,” she says.
A report on how financial stress impacts work found that worries about money caused a 34 percent increase in absenteeism and tardiness, and that financially stressed employees miss about twice as many work days each year compared with their non-financially-stressed counterparts.
Financial stress can also lead to negative coping behaviors, says McCoy. “Alcohol or drugs may be used to numb stress, creating dual crises — financial and addictive — that require integrated therapy approaches,” she says.
Sleep Problems
“People often report difficulty falling asleep or staying asleep when debts or bill payments weigh heavily on the mind,” says McCoy.
Experiencing financial strain is linked with insomnia, poor sleep quality, and not sleeping the recommended amount.
While a restless night here and there isn’t cause for concern, sleep issues that persist and become chronic can increase the likelihood of many chronic conditions, including dementia, heart disease, type 2 diabetes, and even cancers of the breast, colon, ovaries, and prostate.
Heart Disease and Other Chronic Illness
Stress triggers a series of physical reactions — your heart rate quickens, muscles tense, and breathing quickens — thanks to increased levels of the stress hormones cortisol and adrenaline (which act like messengers, readying the body to cope with a perceived threat).
If this response is chronic, as can be the case with financial stress, it can lead to problems like hypertension, high cholesterol, and muscle pain.
Research suggests that people who are frequently stressed about having enough money to pay their rent or mortgage have double the risk of heart disease compared with people who saw themselves as financially secure.
A review of five studies that looked at heart health outcomes found that people under financial stress had a 19 percent greater risk for heart disease or a major cardiac event like a stroke or heart attack.
Financial stress has also been linked to worse biological health as measured by inflammatory biomarkers. Researchers found that financial strain was “the most detrimental to biological health,” compared with other kinds of stress, including death of a loved one or divorce, although the study authors said that more research was needed to confirm this finding. They theorized financial stress was the hardest on the body because it can affect so many areas of life, “leading to family conflict, social exclusion, and even hunger or homelessness.”
And for people who already have chronic conditions or health issues, financial stress may exacerbate the problems. “When money is scarce, people are more likely to skip doctor visits, ignore recommended treatments, or fail to fill prescriptions,” says McCoy.
