The Effects of Debt on the Relationship to Psychological and Social Well-Being

Abstract

Debt is negatively correlated with multiple health facets such as depression, anxiety, and suicidal thoughts. The serious consequences of debt can be utterly detrimental to success, both in school and beyond. This study examined the relationships between debt and well-being in a longitudinal sample of 7,104 adults measured at three time points between 1995 and 2014. Data were extracted from the Midlife in the United States (MIDUS) study waves one, two, and three conducted via telephone and mail surveys. Information regarding sex, age, income, student status, debt, psychological and social health, and attitudes toward debt and life satisfaction will be used for this project. We found relationships between debt and social and psychological well-being, as well as relationships between demographic characteristics of age, education, sex, and income on debt and well-being respectively. Additionally, we found a mediating role of financial satisfaction, and moderating effects of age, education, and student status. The present study illuminates the need for better financial education for young people and highlights the unique concerns of student populations, as well as the important role of attitudes on complicated concepts such as debt.