Financial woes don\u2019t just affect your wallet and lifestyle \u2013 they also have a substantial negative effect on your physical health. This creates a dangerous self-repeating cycle as you are forced to pay out for your illnesses, says Momentum.<\/p>\n
In a new report\u00a0titled \u201cFinancial wellness and debt as a predictor of physical wellness and claims\u201d, the health group found a clear link between\u00a0financial stress and ill health in South Africa.<\/p>\n
Stress in general is a major risk factor for mental and physical wellbeing, with those affected experiencing things like anxiety, depression, migraines, ulcers, sleep disturbances and heart attacks, Momentum said.<\/p>\n
In particular, financial stress can be one of the most difficult risks to manage as it normally takes consumers a long period of time to just admit that they have financial problems.<\/p>\n
This also affects the whole family and can also lead to unhealthy coping mechanisms or habits, causing further health problems.<\/p>\n
\u201cThe research shows a clear link between consumers\u2019 financial health and their physical health,\u201d said Ina Shaw, head of Mometum Multiply rewards.<\/p>\n
\u201cPut differently, there is a relationship between the level and state of consumers\u2019 indebtedness and their likelihood of suffering from chronic diseases – which in turn will have a negative impact on their financial situation,” she said.<\/p>\n
According to Shaw, the study shows that consumers who are constantly in arrears with debt repayments are more likely to suffer from abnormal high blood pressure, than those who weren\u2019t.<\/p>\n
In addition, consumers who are constantly in arrears with debt repayments are also more likely to have high glucose measurements than those who weren\u2019t, signalling possible diabetes problems.<\/p>\n
These health risks stemming from financial stress also manifest themselves in the medical aid claims of consumers.<\/p>\n
The research shows that once consumers\u2019 unsecured debt reached 20 times their monthly gross income, their chronic medical aid claims almost doubled for all age and income groups.<\/p>\n
Unsecured debt normally reaches this point when consumers are in dire straits, in that they have to borrow to repay other debts and this is an indication of financial stress.<\/p>\n
Poor health also lead to financial stress once consumers have to incur out of pocket expenses to make co-payments to doctors, medicine and hospital treatment, said Shaw.<\/p>\n
“This normally negatively affects consumers\u2019 cash flow and leads to them falling in arrears with accounts or debts, which causes them to borrow even more to pay these accounts and debts.<\/p>\n
“However, this will affect consumers\u2019 cash flow even further as they have to fork out even more money for debt repayments, leaving less money for other outlays such as food or transport costs.<\/p>\n
“This increases the financial stress thus perpetuating the cycle of more health expenses and stress,” she said.<\/p>\n