Journal of Financial Counseling and Planning reposted this
Debt Collection Experience and Health: Financial Access as a Moderator A new study looked at how dealing with debt collectors impacts people's physical health. The researchers also examined if having access to mainstream financial services like bank accounts and credit cards makes a difference. To do this, they used 2022 Financial Health Pulse data, and they identified three groups of people based on their access to financial services - the "Investors" had the most access, the "Working Class" had moderate access, and the "Thinly Banked" had very little access. The study found that people who had experienced debt collection in the past year reported worse physical health compared to those who didn't deal with debt collectors. This negative impact on health was strongest for the "Thinly Banked" group with the least access to financial services. For the other two groups with better financial access, the harmful effects of debt collection on physical health were still present but not as severe. This suggests that being able to use mainstream banking and credit products may help cushion some of the health strains from dealing with debt collectors. Overall, this research highlights how the stressful experience of debt collection can take a toll on people's physical well-being, especially for those already facing financial exclusion and limited access to financial services. https://lnkd.in/eCeUm4B8 AFCPE® (Association for Financial Counseling and Planning Education®) #debt #experience #health