Over-indebtedness and consequences for well-being

Households, even those that are income rich or liquidity unconstrained, can be disrupted by unexpected financial shocks subsequently leaving them experiencing financial strain. Financial stress can lead to poor psychological states such as depression or anxiety, which in turn are thought to influence health, either directly via physiological processes that influence disease pathogenesis or through behavioural patterns which can then contribute to disease or mortality.

This research offers a greater breadth of understanding than the extant literature. Not only do I consider the direct impact of financial stress on health, but go beyond the black box view of causality and consider potential mediating variables in order to explain how this connection might occur. This research also offers insight into the effect of wealth shocks on health and health behaviours, subject matter now thrown into sharp relief by the emerging consequences of the COVID-19 pandemic.