Consumer warning: Studies show strong link between financial stress and mental health problems

ROCHESTER, NY — As Mental Health Awareness Month comes to a close, Wednesday’s Consumer Alert examines a real connection that researchers are now acknowledging. People who suffer financial stress often suffer mentally and emotionally as well.

When News10NBC investigative consumer reporter Deanna Dewberry met Yalitza Galan last month, she was suffering from financial stress. “I’m powerless because it’s just one person. I’m the only person working,” Galan said. Her husband had been injured on the job, and while it was already difficult to pay the bills before, it was nearly impossible on one income.

“What is out there for a family like me to get by? Because I work. I work six days a week. Nonstop. And I can’t do it. I can’t do it,” Galan said. She admitted she was sleep-deprived, constantly anxious and on the verge of a breakdown. And she’s not alone. In a recent Bankrate study, 47% of respondents said money issues affected their mental health.

“And that was actually more important than any other factor we asked about. So more than people’s health. More than their relationships with family and friends. More than current events. People cite money as their number one stressor,” said Ted Rossman, senior industry analyst at Bankrate. The study found that everyday expenses have the biggest psychological impact – grocery prices, gas and rent.

“It has gotten to the point where rent has become a luxury. You can’t think about maybe giving your children a summer holiday. You have to think for 12 months about how you are going to pay the rent in your current situation,” said Galan.

Her situation is that of many of Rochester’s working poor, most of whom rent. A study by the National Institute of Health also found that people with financial problems suffer more from psychological stress and that renters are more stressed than homeowners. When Dewberry interviewed Galan, her landlord had given her 90 days to find a new house.

“When my children ask me if we’re going to have a home, that’s the worst thing that can happen to a parent,” Galan said. And it’s been a heavy burden on her mental health.

So what are some solutions? “The most important thing is to develop a plan. Often when we worry, it’s because we feel like we’ve lost control. But you can regain some of that control by creating a plan,” Rossman said. When we have a plan, we feel like we have more control.

And that’s certainly true for Galan and her family. After Dewberry’s first story aired last month, a great landlord saw her story and offered her a home. She’s now making plans for her financial recovery.

If you’re having trouble making a plan, start by contacting a financial counselor. You can do this for free or at a nominal cost at Consumer Credit Counseling of Rochester.