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Beyond debt. A moderator analysis of the relationship between perceived financial strain and mental health

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  • Selenko, Eva
  • Batinic, Bernad

Abstract

Heavy debt not only has economic consequences, but has also been related to severe psychological and physical distress. The present study investigates the relationship between perceived financial strain and mental health, and individual-level variables that moderate this relationship. Specifically it was expected that employment, access to the latent benefits of work, and self-efficacy would buffer the relationship between perceived financial strain and mental health. In a 2009 study conducted in Austria, among 106 people on the verge of bankruptcy, perceived financial strain appeared as the strongest predictor of distress. This effect was moderated by two out of five latent benefits of work and self-efficacy, but employment status failed to have a significant effect. The findings show the importance of subjective economic stress for the prediction of mental health among people in serious financial strain and indicate significant moderators of this relationship.

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  • Selenko, Eva & Batinic, Bernad, 2011. "Beyond debt. A moderator analysis of the relationship between perceived financial strain and mental health," Social Science & Medicine, Elsevier, vol. 73(12), pages 1725-1732.
    • Handle: RePEc:eee:socmed:v:73:y:2011:i:12:p:1725-1732
    DOI: 10.1016/j.socscimed.2011.09.022
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    1. Piotr Bialowolski & Dorota Weziak‐Bialowolska, 2021. "Good credit, bad credit: The differential role of the sources of debt in life satisfaction," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(3), pages 967-994, September.
    2. Walsemann, Katrina M. & Gee, Gilbert C. & Gentile, Danielle, 2015. "Sick of our loans: Student borrowing and the mental health of young adults in the United States," Social Science & Medicine, Elsevier, vol. 124(C), pages 85-93.
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    4. Piotr Białowolski, 2018. "Hard Times! How do Households Cope with Financial Difficulties? Evidence from the Swiss Household Panel," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(1), pages 147-161, August.
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    6. Ibrahim, Fatma & McHugh, Neil & Biosca, Olga & Baker, Rachel & Laxton, Tim & Donaldson, Cam, 2021. "Microcredit as a public health initiative? Exploring mechanisms and pathways to health and wellbeing," Social Science & Medicine, Elsevier, vol. 270(C).
    7. Prieto, Joaquin, 2021. "A multidimensional approach to measuring economic insecurity: the case of Chile," LSE Research Online Documents on Economics 112490, London School of Economics and Political Science, LSE Library.
    8. Piotr Białowolski & Dorota Węziak-Białowolska, 2017. "What Does a Swiss Franc Mortgage Cost? The Tale of Polish Trust for Foreign Currency Denominated Mortgages: Implications for Well-Being and Health," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(1), pages 285-301, August.
    9. Piotr Bialowolski & Dorota Weziak-Bialowolska & Eileen McNeely, 2021. "The Role of Financial Fragility and Financial Control for Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(3), pages 1137-1157, June.
    10. Joaquín Prieto, 2021. "A multidimensional approach to measuring economic insecurity: The case of Chile," Working Papers 591, ECINEQ, Society for the Study of Economic Inequality.
    11. Declan French, 2018. "Financial strain in the United Kingdom," Oxford Economic Papers, Oxford University Press, vol. 70(1), pages 163-182.
    12. French, Declan & Vigne, Samuel, 2019. "The causes and consequences of household financial strain: A systematic review," International Review of Financial Analysis, Elsevier, vol. 62(C), pages 150-156.
    13. Mervin, Merehau Cindy & Frijters, Paul, 2014. "Is shared misery double misery?," Social Science & Medicine, Elsevier, vol. 107(C), pages 68-77.
    14. Bialowolski, Piotr & Weziak-Bialowolska, Dorota & Lee, Matthew T. & Chen, Ying & VanderWeele, Tyler J. & McNeely, Eileen, 2021. "The role of financial conditions for physical and mental health. Evidence from a longitudinal survey and insurance claims data," Social Science & Medicine, Elsevier, vol. 281(C).
    15. Joaquín Prieto, 2022. "A Multidimensional Approach to Measuring Economic Insecurity: The Case of Chile," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(2), pages 823-855, September.
    16. Prieto Suarez, Joaquin, 2022. "A multidimensional approach to measuring economic insecurity: the case of Chile," LSE Research Online Documents on Economics 114623, London School of Economics and Political Science, LSE Library.
    17. Lu, Zhuofei & Wang, Senhu & Ling, Wanying & Guo, Ya, 2023. "Gig work and mental health during the Covid-19 pandemic: A gendered examination of comparisons with regular employment and unemployment," Social Science & Medicine, Elsevier, vol. 337(C).
    18. Hashmi, Rubayyat & Alam, Khorshed & Gow, Jeff, 2020. "Socioeconomic inequalities in mental health in Australia: Explaining life shock exposure," Health Policy, Elsevier, vol. 124(1), pages 97-105.
    19. Sweet, Elizabeth & Nandi, Arijit & Adam, Emma K. & McDade, Thomas W., 2013. "The high price of debt: Household financial debt and its impact on mental and physical health," Social Science & Medicine, Elsevier, vol. 91(C), pages 94-100.
    20. Soomin Ryu & Lu Fan, 2023. "The Relationship Between Financial Worries and Psychological Distress Among U.S. Adults," Journal of Family and Economic Issues, Springer, vol. 44(1), pages 16-33, March.
    21. Stefan Angel, 2016. "The Effect of Over-Indebtedness on Health: Comparative Analyses for Europe," Kyklos, Wiley Blackwell, vol. 69(2), pages 208-227, May.
    22. Nicole Andelic & Aidan Feeney, 2023. "Poor mental health is associated with the exacerbation of personal debt problems: A study of debt advice adherence," International Journal of Social Psychiatry, , vol. 69(2), pages 286-293, March.
    23. Cécile Barbaret & Christelle Brosse & Wadih Rhondali & Murielle Ruer & Léa Monsarrat & Patrick Michaud & Anne Marie Schott & Marvin Delgado-Guay & Eduardo Bruera & Stéphane Sanchez & Marilène Filbet, 2017. "Financial distress in patients with advanced cancer," PLOS ONE, Public Library of Science, vol. 12(5), pages 1-10, May.

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