Video – Finances and psychological health

Length: 3:08

TEXT TRANSCRIPT

Nowadays, debt is practically a lifestyle. The pressure to maintain one’s standard of living combined with consumerism can lead people to lose control of their personal finances.

For many people, financial problems are a heavy burden and not something they’re comfortable discussing openly. Fortunately, there are ways to reduce the resulting anxiety.

We should first note that debt is not the result of short-term financial difficulties.

Factors that can identify a person living with a debt problem include:

  • a level of spending that is higher than their budget
  • the use of credit cards by necessity
  • borrowing money to make ends meet
  • payments that are frequently late

These consumption habits have consequences on physical and psychological health. In fact, 95% of people living with debt say they have symptoms of anxiety, 94% report physical health problems, and 47% admitted to having had suicidal thoughts.

The most frequently experienced physical ailments are sleep disorders, back pain and persistent fatigue. Chronic stress that takes a toll on mental health is also common.

There are various actions one can take to mitigate financial stress, including:

  • making a list of income, essential expenses and debts
  • making and following a budget
  • limiting the use of credit
  • seeking expert help
  • starting savings

Psychologically, it can be beneficial to consult a professional to better understand what drives one to spend and identify the factors associated with this tendency.

In addition to creating personal problems, financial stress can affect work efficiency.

Employees who are too stressed about their personal finances are more likely to experience a drop in motivation and productivity. This can lead to problems such as time wastage, errors, absenteeism and presenteeism. For this reason, it is a good idea for companies to take care of their employees’ financial health.

An organization can implement strategies for middle management to provide support. Employers can also be more present and available for employees who need help. The assistance provided can be direct or indirect and consist of short- or long-term actions.

Good financial health promotes better overall health and has a positive effect on productivity at work.

Employees and employers alike should stay alert for signs of financial difficulties.

To find out more about this topic, we suggest you read the reference document.

In case of any questions, doubts or a specific need for support, don’t hesitate to contact the specialized support service offered to the eligible individuals.