Debt stress – ‘A current health hazard for SA consumers’
Finances play an important role in South Africans’ lives and the strain or stress caused by debt can indeed be classified as a serious health hazard for them, said DebtSafe.
To show their support for Mental Health Awareness Month this October, DebtSafe revealed the recent debt and financial stress related statistics.
This feedback was shared by over a thousand respondents who took part in the DebtSafe Financial Reality Survey in June 2019 and may confirm the fact that financial or debt stress are among the serious health hazards of modern times.
According to Carla Oberholzer, debt adviser at DebtSafe, “The current economy indicates that times sure are tough and South Africans tend to look at credit to try and make life a bit ‘easier’.
Research has also indicated, numerous times, that financial or debt-related stress can indeed affect people’s physical, emotional and mental health.”
Financial strain or stress has influenced –
• 56 per cent of these consumers’ stress levels
• 40 per cent of the respondents’ sleep patterns
• decision-making abilities of 29 per cent of these respondents
• the overall health of 28 per cent of the consumers
• 26 per cent of the respondents’ relationships
Main reasons for having debt:
• Tough economic times (living costs like food, fuel etc. are ridiculously expensive) – 67 per cent
• Education/ school expenses (personal/ children/ other relatives) – 38 per cent
• Unforeseen/ emergency expenses (death, car and/ or house repairs) – 29 per cent
The biggest financial worry these respondents experience:
• Income not keeping up with inflation – 25 per cent
• Not being able to save for anything – 21 per cent
“These statistics are a bitter pill to swallow. And, consumers have to go back to their financial health chart or drawing board to see what they can do to improve their money management skills, while getting rid of debt in the process. This can then help lower their overall stress levels,” highlighted Oberholzer.
She added that since consumers’ financial or debt stress has been evident lately, it can have a ripple effect by causing anxiety that affects a person’s physical wellness, emotional health and mental state.
It is time for South Africans to take another look at their finance management.”
She gave four financial tips to help those in doing just that and to get clarity over their fiscal position to fix their stress levels in the process:
1. Without a practical budget, an individual can’t grasp the bigger financial situation he or she is in, and not be as proactive with their finances as they ought to be.
2. Consumers need to have a hands-on approach when it comes to their financial situation and fixing their debt. They should print out a few months’ bank statements and highlight or inspect those ‘spending leaks’, ‘concerning payments’ and money-wasted deductions that they find.
3. They should always encourage proper two-way communication with their banker, financial planner or credit provider – whether they need to negotiate certain terms or get the financial help they request.
4. Without the assistance or support of various experts, South African consumers can surely struggle to get out of debt, and their physical, emotional and mental health state can get a severe knock because of it. If their financial situation is out of control, the National Credit Regulator is here to assist. In some cases, debt review can be a viable option to protect a house or car in the process. And, if individuals are struggling with sleep patterns, anxiety and various health issues due to this type of financial stress, they should consult or go to their nearest healthcare practitioner or provider (such as a hospital and clinic) that can assist them with the additional support that they also might require.
According to Carla, mental, physical and emotional health play vital roles when it comes to a consumer’s overall health.
South Africans should not let their financial or debt stress become a ‘severe health hazard’ for themselves. Individuals should take care and not allow debt or financial strain to be a burden that ruins well-being, and dampen their never-ending attempts to live an abundantly healthy life.”
