The relationship between personal debt and mental health: a systematic review

• Published in: Mental health review journal 2011-12, Vol.16 (4), p.153-166
• Main Authors: Fitch, Chris, Hamilton, Sarah, Bassett, Paul, Davey, Ryan
• Format: Article
• Language: English
• Subjects: Debt; Debts; Financial difficulty; Income; Mental disorders; Mental health; Poverty; Recession; Studies; Systematic review
• ISSN: 1361-9322; 2042-8758
• DOI: 10.1108/13619321111202313

Purpose - The purpose of this paper is to evaluate the evidence on the extent to which personal debt impacts on mental health, and mental health on personal debt.Design methodology approach - The paper systematically reviews the English-language, peer-reviewed literature, 1980-2009, drawing on 14 databases across the medical, business, legal, and social science fields.Findings - From 39,333 potential papers identified, 39,283 were excluded, and 50 were reviewed using a narrative analysis approach. Among nine longitudinal studies, three controlled for psychiatric morbidity or psychological wellbeing at baseline, income wealth, and other socio-economic variables. From these, two reported indebtedness or an increase in debt levels associated with subsequently poorer mental health, while one study found no such relationship. While methodological limitations make it difficult to definitively demonstrate whether indebtedness causes poorer mental health, plausible data exist which indicate that indebtedness may contribute to the development of mental health problems, and mediate accepted relationships between poverty, low income, and mental disorder.Research limitations implications - Existing research either uses definitions of "debt" which lack specificity, or definitions of "mental health" which are too broad-brushed. A more sensitive set of core questions is needed. Further longitudinal research is also a key priority.Practical implications - Those working with people with debt problems need to be aware of the potential risk of reduced mental wellbeing or mental disorder.Originality value - The mental health of individuals living with indebtedness has become a recent concern for the health and financial services sectors. However, no systematic reviews have so far been conducted.