A recent study conducted at the National University of Singapore’s Social Service Research Center indicates people who are relieved of their debt such as through bankruptcy or a charitable contribution, perform better on cognitive functions and have less anxiety.
The study was conducted between January 2015 and August 2017 involving almost 200 low-income people. The participants benefited from Getting Out of Debt (GOOD) charity program that unexpectedly paid part of their debt. The study shows removing the debt opens up the mind to think of other things besides how to make the next payment.
A comprehensive financial survey was designed by the research team and was given to the participants before and three months after they received debt relief to measure anxiety and cognitive function and financial decision making.
Less Anxious After Debt Relief
The study found that participants experienced less anxiety, improved cognitive functioning and could make better financial decisions three months after receiving debt relief. Participants that had more accounts eliminated acquired more psychological and cognitive improvements.
‘Because debt impairs psychological functioning and decision-making, it would be extremely challenging for even the motivated and talented to escape poverty.’ — Dr. Ong Qiyan, National University of Singapore
In a similar study, ideas42, discovered the same findings:
“Bear in mind, however, that even small gifts of time, money, and cognitive bandwidth can help free up space for longer-term thinking and investments in the future. Over time and in aggregate, these changes could move families onto an entirely different trajectory, one that ends in a permanent escape from poverty.”
If you have overwhelming debt, you know the constant worry about how you will pay your bills and keep from losing your home or car. You avoid answering your phone due to the constant creditor’s phone calls demanding to know when you will pay the bill can be a stressful way to live.
Let a Dallas bankruptcy attorney help you get debt relief and take the worry away about how you will pay your bills.