Help break the link between debt and ill health
Photo by Towfiqu Barbhuiya on Unsplash
Did you know that debt and physical and mental health are closely linked? As healthcare costs continue to rise, more and more people are finding themselves struggling with debt, which can have serious implications for their well-being. The stress and anxiety of debt can exacerbate mental health issues and lead to physical symptoms such as headaches, insomnia and fatigue. It's clear that poor finances, poor health and lack of access to healthcare are all interconnected and create a cycle that is difficult to break.
According to 2022 Experian data, the average American holds a debt balance of $96,371, which can significantly impact their quality of life. In Canada, the average debt balance is C$73,532, as reported by the CBC. However, recent research by the Filene Research Institute suggests that credit unions can play a vital role in improving the financial and physical health of their members.
Average American debt per consumer, 2022
In their report titled, "Breaking the Debt Cycle: Credit Union Interventions for Addressing Health Care Costs," Filene highlights several successful interventions implemented by credit unions to address the issue of debt caused by healthcare expenses. By offering low-interest loans and flexible payment options, credit unions can help their members avoid falling into debt and reduce the financial strain of healthcare costs
One particularly important finding of the report is the role that financial education plays in breaking the debt cycle. Credit unions can provide their members with the knowledge and tools they need to make informed financial decisions, preventing debt before it even occurs.
Three ways to break the debt cycle
Offer low-interest loans and flexible payment options
Develop partnerships with healthcare providers to offer financial education and advice
Offer financial education programs that improve financial literacy and capability
At Currency Marketing, we are committed to providing high-quality financial education products to credit unions across Canada and the U.S. Our It's a Money Thing financial education program is designed to improve financial literacy and capability among credit union members. By offering It’s a Money Thing to your members, you can make a significant contribution to the knowledge and skills that they need to make smart financial decisions and avoid the burdens of debt and poor health outcomes.
Help break the link between debt and poor health outcomes by implementing Filene’s recommendations, as well as providing financial education and advice. When credit unions offer financial education programs like It's a Money Thing, members can take control of their finances and improve their overall well-being.
Tim McAlpine is the Founder & CEO of Currency Marketing. He is best known for developing the It's a Money Thing Financial Education Program that credit unions from around North America are using to connect with new young adult members. He is also a driving force behind CUES Emerge, an emerging leader program that combines online learning, peer collaboration and an exciting competition component.
