Even A Little Debt Can Cause Depression

Financial debt, rather small or large, is enough to weigh on your mind. New findings published in the Journal of Family and Economic Issues found that in some cases, debt can even lead to depression.

Unfortunately, statistics have shown that household debt has dramatically increased in the last 40 years, resulting from unsecured credit card debt and household debt. While it has declined since 2008 as credit has become more difficult to obtain, it remains at enormously high levels.

For instance, short-term household debt, including credit cards and overdue bills, was found to increase depressive symptoms, according to researchers at the University of Wisconsin-Madison. Furthermore, researchers found that this was especially true for those who were unmarried. The study examined the impact of different types of debt on depression and their effects on different sectors of the United States population. Little evidence was found for an association with mid- or long-term debt.

"New debt contracts could be offered to vulnerable borrowers and the population sectors we identified could be targeted with help in building their financial capacity," lead study author Lawrence Berger said in a news release. "The findings could also be used to help mental health practitioners better understand the impact of clients' borrowing habits on depression."

For the study, researchers collected and analyzed data on over 8,500 working-age adults, with information taken from six years apart and ending in 1994.

They found that those who had debt were typically younger and more likely to be male with higher educated parents. They were also less likely to be married and working with greater income and assets and in better health; this included the fact that 79 percent of respondents had some debt, totaling an average of $42,000. Long-term debt accounted for by far the largest portion.