Psychological Effects of Debt

Course overview

Psychological Effects of Debt is a 2-hour online continuing education (CE) course that explores the reasons people go into debt - from the normalization of debt in America and unfair corporate practices, to negative childhood experiences, education levels, and compensatory consumption. We start by describing the factors that contribute to the normalization of debt, such as politicians encouraging spending to stimulate the economy; financial institutions requiring a history of good credit for mortgages and car loans; and the cost of healthcare and lack of financial protection to those in medical need. We then discuss early indicators of risk taking among young children and how the parent-child relationship is correlated with long term financial outcomes. If children do not learn self-control when they are young, they may be more susceptible to impulse spending or compulsive shopping. We study the four types of transformative expectations that materialistic people expect when making purchases. We consider several research studies that demonstrate the ways in which debt affects mental health, health behaviors, and physical health. We also describe how financial behaviors, responsibilities, and debt affect relationships with spouses, partners, and children. Finally, we examine the ways to combat debt and the psychological effects it causes. Included are a series of exercises to support clients to find their way out of debt, improve mental health, and regain a more enjoyable and fulfilling life. Course #21-55 | 2021 | 36 pages | 15 posttest questions