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Defined Terms and Documents
Extreme Financial And Emotional Distress means
Financial Stress
which impacts
hundreds of thousands of
Financially Uneducated And Vulnerable Australians
can negatively affect their physical and mental health in several ways, not limited to:
-
Unhealthy Coping
Behaviours: People experiencing
Financial Stress
can be more likely to numb their anxiety by drinking, smoking, overeating
and practicing other unhealthy
coping behaviours. This in turn leads to more
stress.
-
Less Money For
Self-Care: With less money in
the budget, people who are already under financial stress tend to cut
corners in areas like health care to pay for basic necessities like food.
Small problems can go unchecked and turn into larger problems. This also
leads to more stress.
-
Lost Sleep:
When under financial stress, people often experience trouble
sleeping, which can add up to a sleep deficit,
impairing immune functioning and cognitive abilities, causing additional
moodiness, and more.
-
Unhealthy Emotions:
Credit card debt can cause unhealthy emotions that can take a toll on
health. People can experience anxiety, frustration and a sense of
hopelessness as the debt piles up and increasing amounts of money are needed
just to pay the interest. This causes additional stress, which compounds
with the stress from poor coping and self-neglect, to become a menacing
amount of stress.
McKinsey Report - May 2014 categorizes 'Five Segments' of Credit
Cardholders in the USA. Below is an
extract from the 'Third Segment', namely 'Financially stressed':
"Carry heavy credit card
debt—nearly four times the average, at $7,453USD—and consider themselves unable
to control their spending or stick to a budget. Some are chronic
spendthrifts; others are mired in circumstances that force them to borrow on
credit cards to pay for essentials. Seldom shop around for better
places to put their outstanding balances and doubt they will ever get out
from under their burden of debt. Expect financial trouble for themselves and
the wider economy. Poorest among the segments, with just a quarter of the
financial assets (a mean of $44,000USD) of the average cardholder. Credit plays
a crucial role in satisfying this group’s day-to-day needs: keeping a roof
over their head, paying for their daily commute, keeping a prescription
filled. This is not a sustainable path, but they are unable to abandon it
just yet. Value simplicity and transparency in fees, rates and terms,
but their biggest need is for something that no credit card offers: a
mechanism allowing them to impose their own spending limits which would
enable them to carry a credit card for larger purchases that take time to
pay off, without fearing they might be tempted to use it for non-essentials."
See:
Australian Governments
allocate $43.38 million annually to 44 Australian charities to provide
financial counselling to Australians that are experiencing
Extreme Financial And Emotional Distress
Credit Card Distress Authorities
Quotes from reputable
Credit Card Distress Authorities
about
unconscionable
advertising of Credit Cards by
Credit Card Issuers
SMH
Middle class hit by debt - Huge
mortgage repayments and credit cards bills are taking their toll
snapshots the problem that non-conflicted ‘Not-For-Profits’ (Salvation
Army's Moneycare service
Centacare,
Anglicare,
Lifeline,
Wesley
Mission's Credit Line,
Smith Family,
St Vincent de
Paul's Budget and Financial Counselling Service,
Centacare
‘et al’) deal with the damage when families become hopelessly credit
cards indebted.
The Wesley Report: Facing Financial Stress
- April 2015
and SMH article "The
creeping danger of Australian households' love affair with credit".
"When
debt is easy to bank up"
AUSTRALIANS owe almost $50 billion on credit cards as spiralling living
costs force them to put everyday expenses and even mortgage repayments on
plastic.
5 ways credit card debt can be hazardous to your health.
Mental illness and Debt - The Good Shepherd
Financial Literacy or
Financial Literacy Skills
Financial Literacy
Demographic Quintiles
Financial Literacy
and Credit Cards: A Multi Campus Survey
Financially Educated or
Financially Literate
Financially Uneducated And Vulnerable Australians
Financial Stress
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