Finance and Mental Health
This is my first offering in over a year, I wanted to spend some time away from commentary and more time living life. However, I felt moved to write this piece as I believe it is becoming all to common with the state of the nation today.
Many of my clients are feeling significant financial pressure, with inflation and interest rates they are feeling disempowered and frightened. Some find themselves entertaining the idea if short term, high interest loans to carry them over. The problem is when these loans become an additional burden and this in turn adds to their mental health issues.
I have been doing some research into these loans and whist on the surface they seem a godsend, in truth it might be more devilsent. Having worked with people in great distress, the adds and websites of many of these companies offer a false solution to a very real problem. With what seems small payments people are sold the idea that this will fix big problems. When you add up these payments, often what you payback is twice what you borrowed in the first place. The strain of this can lead to significant psychological distress.
Finance need to consider this as much as a clients ability to payback the loan itself. It is unethical to ignore this very real concern when offering finance. This is made more complicated when most of these decisions are made online without any personal contact between lender and client. We as a society should not turn a blind eye to this potential mental health issue. I believe we need to hold money lenders to account in order that our psychologically vulnerable fellows are put at risk for quick cash at exorbitant rates of interest. Quick cash which may lead to long term issues which money cannot and will not solve.
