The correlation between mental health issues and holding debt is well-known. There is still a stigma and taboo around the incapability to repay debts which can lead to feelings of shame, guilt and ultimately isolation for individuals with debt commitment issues. A Swedish study confirms that problems with repaying debts have a severe impact on individuals’ risk of committing suicide, regardless of other socioeconomic risk factors controlled for.
Young people are more vulnerable to over-indebtedness and are therefore at greater risk of mental health issues than other age groups. According to data on household over-indebtedness from Eurofound, an EU Agency for the improvement of living and working conditions, young people between 25–34-year-olds in the EU are most likely to be in arrears. Furthermore, the risk of over-indebtedness is significantly higher among young people who are unable to obtain financial support from family or friends.
Not only does over-indebtedness impact the indebted individual, but it can also affect the entire family of the one affected. Youths and children in economically vulnerable families tend to be well aware of the economic conditions at home. A recent survey from Save the Children in Sweden on children aged 12-16 showed that 12 per cent of children were concerned about their family’s finances. In areas with socioeconomic challenges that same result is 18 per cent. As children have a higher risk of suffering from mental health problems if their parents have mental health issues, subsequently over-indebtedness can affect children’s health.
At Hoist Finance, we understand that our customers are often facing difficult situations, and that it can affect their well-being. We are committed to contribute to an inclusive financial ecosystem and supporting our customers to pay off their debts. We aim to increase financial inclusion by:
- partnering with external parties to improve financial literacy and the understanding of how credit and financial services work.
- providing job opportunities for unemployed customers through our partnership with AppJobs.
- listening to our customers’ individual circumstances, for example if there are children in the household, to ensure that we help them to set up affordable and sustainable payment plans.
If you have more questions regarding how we support our customers, please contact us at firstname.lastname@example.org.