Financial health interventions are needed, to save financially struggling people

By Jean Baptiste Ndabananiye.

Different sources highlight that financial health, as the state of an individual’s or organization’s positive financial situation and overall financial well-being, is crucial while emphasizing its vital role in influencing access to healthcare, lifestyle choices, mental well-being, and the ability to manage and prevent diseases.

In the meanwhile, “There is a strong link between problem debt and suicide, and more than 100,000 people in England attempt suicide while in problem debt each year, says Money and Mental Health Policy Institute. The sources therefore ask relevant actors to implement interventions designed to assist vulnerable people to be financially healthy.

Corporate Finance Institute constitutes an online training and education platform for finance and investment professionals based in Vancouver, Canada. It says “Being in good financial health is a key part of being in good health overall because the stress that results from not being in good financial health can easily lead to actual physical disease. Your financial health encompasses all the various aspects of your financial life,  it is composed of several aspects, such as income, expenses, savings, investments, debts, credit rating, and overall financial planning.”

“Other factors that impact your financial health include the cost of living, rate of inflation, and level of job security. Conversely, when you are in good financial health, it’s much easier to improve other areas of your life because you’re not so stressed out about paying your bills, and you have more resources and free time to use in pursuing your goals.”

Money and Mental Health Policy Institute is a UK-based charity conducting research and advocating for policies to address the link between financial difficulties and mental health problems. Founded by Martin Lewis, a well-known financial expert, in 2016, this institute aims to improve the lives of people experiencing mental health issues and financial hardship by influencing policymakers, raising awareness, and providing practical solutions.

The institute’s work includes publishing research reports, providing recommendations for policy changes, and developing tools and resources to support individuals and organizations in handling financial challenges faced by those with mental health conditions.

Money and Mental Health Policy Institute points out “Our [latest/2024] research shows that in England alone over 1.5 million people are experiencing both problem debt and mental health problems. 86% of respondents to a Money and Mental Health survey of nearly 5,500 people with experience of mental health problems said that their financial situation had made their mental health problems worse.”

Explaining how financial difficulty harms mental health, Money and Mental Health Policy Institute says “Financial difficulties are a common cause of stress and anxiety. Stigma around debt can mean that people struggle to ask for help and may become isolated. The impact on people’s mental health can be particularly severe if they resort to cutting back on essentials, such as heating and eating, or if creditors are aggressive or insensitive when collecting debts.”

It adds that financial difficulty extremely lowers recovery rates for common mental health conditions. “People with depression and problem debt are 4.2 times more likely to still have depression 18 months later than people without financial difficulty. People in problem debt are three times as likely to have thought about suicide in the past year.

 There is rarely one single factor that drives people to take their own life. Instead, typically, a range of social issues, life events, cognitive and personality factors are combined. However, there is a strong link between problem debt and suicide, and more than 100,000 people in England attempt suicide while in problem debt each year.”

The World Health Organization says “For every suicide there are many more people who attempt suicide. A prior suicide attempt is an important risk factor for suicide in the general population. There are indications that for each adult who died by suicide there may have been more than 20 others attempting suicide.”

Science Direct in September 2022 published a study titled “Job loss, financial strain, and housing problems as suicide precipitants: Associations with other life stressors.”

This research furnishes these key highlights.  16.2% of male and 13.0% of female suicide decedents aged 18+ in 2017–2019 had been facing job/finance/housing problems (JFH). Among decedents, aged 45–64, 22.0% of male and 15.1% of female had been experiencing JFH. JFH was positively linked with a number of crises, depressed mood, and relationship and alcohol problems in both sexes.

Science Direct points out “Suicide prevention approaches are needed at both systemic and individual levels. Coroner/medical examiner and law enforcement agency reports show that some experienced depression and started misusing alcohol and/or other substances following a job loss, but others had these problems throughout life, which caused/contributed to JFH. These findings show the significance of suicide prevention approaches at both systemic (generous unemployment insurance, housing subsidies) and individual (treatment of depression and alcohol/substance misuse problems and social support/connection) levels.”

The research report goes on, reading “Previous research has shown that job loss, financial strain, and/or loss of housing (JFH) in midlife elevate suicide risk. In this study based on the 2017–2019 National Violent Death Reporting System, we examined other suicide precipitants and contributors of decedents whose suicide was in part precipitated by JFH and the circumstances under which they died.”

This study does not clearly show its geographical scope. But, Life In Humanity has detected that it has been carried out in the United States of America, though the authors have not mentioned it explicitly either. Moreover, it has involved a very big number of respondents.

“First, we examined all adult decedents (N = 94,454; 74,042 males [78.4%] and 20,412 females [21.6%]) and then focused on decedents age 45–64 (N = 34,208; 25,640 males [75%] and 8568 females [25.0%]).In this study, we examined adult suicide decedents who had JFH as a suicide precipitant.”

As usually expected, the study discloses that men are more affected than women. “Men, especially middle-aged men with family, have been expected to be the primary breadwinner, which may also explain the higher proportion of married individuals among male than female decedents with JFH. Consistent with previous study findings discussed earlier, we found that the rates of JFH were higher among middle-aged decedents, especially those aged 45–64, in both sexes. About one out of five male decedents and one out of six female decedents age 45–64 had JFH.”

The 45–64 age group bore the highest rate of JFH, with 22.0% for males and 15.1% for females, as a suicide precipitant.  “This sex difference in JFH-precipitated suicides may reflect cultural expectations related to gender. Men, especially middle-aged men with family, have been expected to be the primary breadwinner, which may also explain the higher proportion of married individuals among male than female decedents with JFH.

CME/LE reports show that JFH was in large part due to a job loss and inability to reenter the labor force. Many had been out of work for some years, while others lost a job a short time before the fatal injury and still others were worried about an impending job loss.” 

According to the study, CME/LE reports also indicate that some experienced depression and started abusing alcohol and other substances following a job loss. “But others had these problems preceding JFH, and that caused/contributed to JFH.

 Some also felt that they were a burden to their family, lending support for the interpersonal theory of suicide in which three main drivers of suicide are thwarted belongingness, perceived burdensomeness, and acquired capability (for lethal suicidal behaviors).”

Overall, the findings underscore the significance of stable employment, financial assistance, and housing subsidies for suicide prevention, along with treatment of depression and other mental disorders and alcohol/substance use problems. “Economic stability undergirds physical and mental well-being. A study found strong associations between welfare state generosity (for unemployment insurance, sickness benefits, and pensions) and life expectancy for the US and 17 other high-income countries, showing that the US mortality disadvantage is, in part, a welfare-state disadvantage.

Another study found that the impact of unemployment rates on suicide is offset by the presence of generous state unemployment benefit programs.  Recent studies have also shown significant associations between increased state minimum wage and decreased suicide rates in recent years, with the largest effects observed at higher unemployment levels. ”

“In conclusion, this study shows that a significant proportion of suicides in mid-life is precipitated by job loss and unemployment, financial problems, and/or housing loss.”  

Researchers have therefore called for targeted suicide prevention interventions for unemployed people and those who stand in the process of losing their homes, according to this study. “However, these interventions should be at both systemic (e.g., generous unemployment and health insurance, housing assistance, low interest loans for small businesses; increased availability and affordability of treatment for mental health and substance use problems) and individual (e.g., mental health and substance use treatment to help improve coping skills for alleviating family conflicts and better manage other negative life events) levels.”  

The Conversation constitutes a global network of nonprofit media outlets that publish news and views sourced from the academic and research community. Created in Australia in 2011, it has extended to several regions, including the UK, US, Africa, and Canada. This platform intends to provide a bridge between academic experts and the general public, offering insights and analyses on current events, policy issues, and various topics based on research and evidence.

In its article headlined “Financial crises damage people’s mental health – our global review shows who is worst affected” published on 23 November 2023, it says “Financial crises are periods characterised by devastating losses of income, work, a certain future, and a stable family life. The effect on mental health can be catastrophic.”

“We are the first team to do a systematic review of global research linking financial crises and mental harms. The evidence from almost 100 eligible studies (out of nearly 7,000 we considered) shows that these crises have consistent, long-term negative effects on the wellbeing of whole groups of people, including increases in depression, anxiety and risk of suicide. ”

Challenges to the mental wellbeing of people with financial crisis

The Conversation says “Stigma, stress and social roles.Our research highlights three broad challenges to the mental wellbeing of people struggling in a financial crisis. Understanding how to address them could help make people more psychologically resilient in the face of future financial downturns.”

The Conversation highlights that the stigma of mental illness is decreasing in numerous societies, as “we’ve become more comfortable talking about our wellbeing.” It however points out that people don’t generally feel comfortable addressing their financial hurdles. “It’s less clear, though, if we are okay talking about our finances. Encouraging people to be more open about financial distress with trusted friends, family members and partners, free of any judgment, can be especially important during periods of economic uncertainty. ” 

“Suicide mortality rates increase both during and after periods of financial crisis – a risk that is always higher among men. [But] The reduced stigma around discussing mental health and suicide can buffer against some of the most devastating outcomes. Research shows that talking about suicide can save lives.”

To respond to stress and insecurity from loss of resources, The Conversation advises you not to isolate yourself. “When feeling threatened with loss of income or job security, connecting with people in similar positions both in-person and online, such as via parent groups, can help you feel you’re not alone and is a good way of sharing resources. You should also be able to get help from your local council.”

As for identity, social roles and meaning, The Conversation states “Losing your job or income understandably damages your sense of self. But identity and meaning can be found in various aspects of life, not only work. Be careful not to think of yourself as “just one thing” – whether a breadwinner or a carer – as this can create a sense of fragility. Strive to find greater meaning through family, hobbies, organisations and community work.”