Financially Distressed Consumers: Their Financial Practices, Financial Well-being, and Health
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oneill2005 - p. 74
When unexpected medical bills arrive, the collective impact of unexpected medical expenses, interruption of income, and/or consumer debt can trigger financial distress (Sullivan, Warren, & Westbrook, 2000).
oneill2005 - p. 74
Persons experiencing financial distress may also be unable to follow recommended health maintenance practices such as eating a healthy diet and receiving periodic screening exams (O’Neill, Sorhaindo, Xiao, & Garman, 2005).
oneill2005 - p. 75
Zagorsky (2004) investigated the effect of smoking on an individual’s financial situation. Using wealth and smoking data from the National Longitudinal Survey of Youth 1979 cohort, he found that the typical nonsmoker’s net worth is roughly 50% higher than light smokers and roughly twice the level of heavy smokers.
oneill2005 - p. 75
A higher number of positive financial behaviors such as reducing living expenses and a higher score of self-evaluation of financial behaviors were associated with a lower stress level. Presumably a lower stress level has a positive effect on one’s health as high levels of stress can cause or aggravate physical illnesses such as high blood pressure, migraine headaches, ulcers, ulcerative colitis, and insomnia
oneill2005 - p. 76
This study explores interactions between health and personal finance on the well-being of financially stressed consumers and effects that might result from participation in a credit counseling agency’s debt management program (DMP
oneill2005 - p. 77
The population for this study was a group of financially distressed consumers who telephoned a large national non-profit credit counseling organization, seeking assistance with outstanding debt and subsequently joined its debt management program (DMP).
oneill2005 - p. 77
Financial behaviors. Respondents were asked to reply to binary questions (yes = 1 or no = 0) for nine specific self-reported positive financial behaviors such as “followed a budget or spending plan” and “cut down on living expenses”.
oneill2005 - p. 78
Improved health. This variable was measured by the following binary question (yes = 1 or no = 0): “Since you joined [name of debt management program], has your health improved?”
oneill2005 - p. 78
Improved finances. This variable was measured by the following binary question (yes = 1 or no = 0): “Since you joined [name of debt management program], did anything happen in your life that improved your finances?”
oneill2005 - p. 78
Perceived effect of financial problems on health. This variable was measured by the following binary question (yes = 1 or no = 0): “Do you feel your health has been affected by your financial problems?”
oneill2005 - p. 78
Health status. This variable was measured by the following question: “Overall, would you say your health is very good, good, satisfactory, and poor”.
oneill2005 - p. 78
Negative financial events. This variable was measured by asking respondents if they experienced any of twelve negative events such as “took a cash advance on a credit card” during the past twelve months.
Note: Bad behavior
oneill2005 - p. 78
Financial stress. This variable was measured by the following question: “What do you feel is the level of your financial stress today?”
oneill2005 - p. 78
Financial satisfaction. This variable was measured by a self-anchoring ladder that was originally developed by Cantril (1965) and used by Porter and Garman (1993).
oneill2005 - p. 79
Family relationships. This variable was measured by the following question: “By and large, your family relationships are: poor=1, satisfactory=2, good=3, and very good=4.”