Debt Collection Pressure and Mental Health: Evidence from a Cohort of U.S. Young Adults.

The debt collection industry in the United States has grown in tandem with rising indebtedness. Prior research on debt and mental health mainly treats debt as a resource and liability rather than a power relationship between creditors and debtors. We study the mental health consequences of debt collection pressure using data from the National Longitudinal Survey of Youth-1997 Cohort (N = 7,236). Drawing on stress theory and health power resources theory, we posit collection pressure as a relational stressor that undermines well-being through negative interactions with debt collectors, financial strain, role strain, and stigma. We find that more than one out of every three young adults in this cohort faced debt collection pressure by around age 40, with higher rates among low-income and Black young adults. Individual fixed-effects and lagged dependent variable regression models indicate that debt collection pressure is associated with increased psychological distress, with more severe consequences among low-income young adults.

Inequality in high-cost borrowing and unemployment insurance generosity in US states during the COVID-19 pandemic.

US consumers may turn to the private market for credit when income and government benefits fall short. The most vulnerable consumers have access only to the highest-cost loans. Prior research on trade-offs of credit with government welfare support cannot distinguish between distinct forms of unsecured credit due to data limitations. Here we provide insight on credit-welfare state trade-offs vis-à-vis unemployment insurance generosity by leveraging a large sample of credit data that allow us to separate credit cards, personal loans and alternative financial services loans and to analyse heterogeneity in credit use by household income. We find that more generous state unemployment insurance benefits were associated with a lower probability of high-cost credit use during the first seven quarters of the coronavirus disease 2019 (COVID-19) pandemic. This inverse association was concentrated among consumers living in low-income households. Our results support theories that public benefits are inversely associated with the use of costly credit.

A Faustian Bargain? Rethinking the Role of Debt in Law Students' Career Choices.

Despite the absence of strong empirical evidence to support the relationship, legal scholars have long argued that a model of financing legal education through student debt makes it difficult, if not impossible, for most students to take seriously a career path in Government and Public Interest law (GPI), where salaries are generally lower than private, corporate practice. Drawing from a multi-wave, panel survey of law students, we take advantage of a unique tuition remission intervention that occurred at the founding of UCI Law, resulting in a natural, quasi-experiment. Using OLS regression and an instrumental variables approach, we ask whether law student debt influences the likelihood that students (1) will launch their careers in the GPI and (2) aspire to the GPI sector five years after graduation. We find little to no evidence that student debt is a barrier to a graduate's decision to take a position in the GPI sector at career launch or that debt is a factor in a graduate's career aspirations at UCI law school during the study period. These counterintuitive findings provoke new questions about our understanding of debt in the context of legal education and the types of interventions that might facilitate greater entry into the public sector.

Student Debt and Cardiovascular Disease Risk Among U.S. Adults in Early Mid-Life.

INTRODUCTION: Student loan debt has become common for young adults in the U.S. and is correlated with poor physical and mental health. It is unclear how the accumulation or repayment of student debt is associated with longer-term cardiovascular risks and chronic inflammation. METHODS: Nationally representative data collected between 1994 and 2018 from >4,000 participants of a U.S. cohort study were analyzed in 2021 to assess the associations among change in student debt between young adulthood and early mid-life, 30-year Framingham cardiovascular disease risk scores, and C-reactive protein levels. RESULTS: Ordinary least squares regression revealed higher cardiovascular disease and C-reactive protein risks among those in households who became indebted or were consistently in debt between young adulthood and early mid-life than among those in households who were either never in debt or repaid their loans. This pattern persisted after adjustments for degree completion, socioeconomic measures, and other sources of debt. CONCLUSIONS: These findings provide a benchmark for widening health inequalities among a cohort bearing more student debt than any other in U.S. HISTORY: As student debt accumulates, within-cohort disparities in cardiovascular disease and related morbidities may undermine the health benefits of postsecondary education.

The Foreclosure Crisis, Community Change, and the Cognitive Health of Older Adults.

OBJECTIVES: While home foreclosures are often thought of as a household-level event, the consequences may be far-reaching, and spill over to the broader community. Older adults, in particular, could be affected by the spiral of community changes that result from foreclosures, but we know very little about how the foreclosure crisis is related to older adult health, in particular cognition. METHOD: This article uses growth curve models and data from the Health and Retirement Study matched to Census and county-level foreclosure data to examine whether community foreclosures are related to older adults' cognitive health and the mechanisms responsible. RESULTS: We find that higher rates of county-level foreclosures are associated with a faster decline in individual cognition at older ages. Although we examined an extensive number of individual and community mechanisms, including individual housing wealth and depressive symptoms, community structural factors, social factors, and perceptions of physical disorder and cohesion, none of the mechanisms examined here explained this relationship. DISCUSSION: This study shows that the adverse consequences of home foreclosures spill over to the local community, with implications for the cognitive health of older adults.

Trajectories of Unsecured Debt across the Life Course and Mental Health at Midlife.

In this paper, we contribute to a growing literature on debt and mental health and ask whether patterns of unsecured debt accumulation and repayment over two decades are associated with depressive symptoms at age 50. Using data from the National Longitudinal Study of Youth 1979 Cohort and group trajectory models, we have three key findings. First, we find substantial heterogeneity in debt trajectories across the life course. Second, respondents who report consistently high debt levels across the life course or who cycle in and out of high debt report significantly more depressive symptoms than respondents who hold consistently low levels of debt. These findings hold for both absolute and relative (debt-to-income) debt. Third, we find that the association between debt and depressive symptoms is strongest among respondents with less than a college degree, but we find less evidence for heterogeneity by race in this cohort.

Rising Household Debt and Children's Socioemotional Well-being Trajectories.

Debt is now a substantial aspect of family finances. Yet, research on how household debt is linked with child development has been limited. We use data from the National Longitudinal Survey of Youth 1979 cohort and hierarchical linear models to estimate associations of amounts and types of parental debt (home, education, auto, unsecured/uncollateralized) with child socioemotional well-being. We find that unsecured debt is associated with growth in child behavior problems, whereas this is not the case for other forms of debt. Moreover, the association of unsecured debt with child behavior problems varies by child age and socioeconomic status, with younger children and children from less-advantaged families experiencing larger associations of unsecured debt with greater behavior problems.

Into the Red and Back to the Nest? Student Debt, College Completion, and Returning to the Parental Home among Young Adults.

Rising student debt has sparked concerns about its impact on the transition to adulthood. In this paper, we examine the claim that student debt is leading to a rise in "boomeranging", or returning home, using data from the National Longitudinal Survey of Youth 1997 Cohort and discrete time event history models. We have four findings. First, student loan debt is not associated with boomeranging in the complete sample. However, we find that the association differs by race, such that the link between student debt and returning home is stronger for black than white youth. Third, degree completion is a strong predictor of returning home, whereby those who fail to attain a degree have an increased risk of boomeranging. Fourth, young adult role transitions and socioeconomic well-being are associated with boomeranging. Findings suggest that rising debt has created new risks, and may reproduce social inequalities in the transition to adulthood.

Children with disabilities and trajectories of parents' unsecured debt across the life course.

Prior research shows that having a child with a disability is economically burdensome for parents but we know little about whether this burden extends to unsecured debt. In this study, we examine the link between having a child with a disability that manifests between birth and age 4 and subsequent trajectories in unsecured household debt. We have three key findings. First, we find that having a child with an early-life disabling health condition is associated with a substantial increase in indebtedness in the years immediately following the child's birth, and that this association persists net of a range of potential confounders. Second, we find that parents do not quickly repay this debt, such that parents of a child with a disabling health condition have different trajectories of unsecured debt across the life course than do parents of children without a disabling health condition. Third, we find that the association between early-life child disability and debt is stronger for more severe conditions, such as those that require ongoing medical treatment. The results of this study are informative for understanding an important aspect of economic functioning-indebtedness-for parents of children with disabilities, as well as the causes and correlates of rising unsecured debt in the U.S.

The harder they fall? Sex and race/ethnic specific suicide rates in the U.S. foreclosure crisis.

Previous work shows suicide rates increase during economic recessions, but little research has examined the extent to which the foreclosure crisis-a unique aspect of the Great Recession-has contributed to disparities in rising suicide rates by race and sex. We develop and test two competing hypotheses regarding the association between foreclosures and race by sex specific suicide rates. We link foreclosure data (RealtyTrac) and suicide data (CDC) from 174 metropolitan areas from 2005 to 2010 (1044 MSA-year observations) and find that-net of time invariant unobserved between-metro area differences, national time trends, and time-varying confounders-a rise in the foreclosure rate is associated with a marginal increase in suicide, but this main effect masks considerable heterogeneity across groups. The association is particularly strong for white males, and weaker or non-existent for other race by sex groups.

Parental Debt and Children's Socioemotional Well-being.

OBJECTIVES: We estimated associations between total amount of parental debt and of home mortgage, student loan, automobile, and unsecured debt with children's socioemotional well-being. METHODS: We used population-based longitudinal data from the National Longitudinal Study of Youth 1979 Cohort and Children of the National Longitudinal Study of Youth 1979 Cohort. Our analytic sample consisted of 29 318 child-year observations of 9011 children and their mothers observed annually or biennially from 1986 to 2008. We used the Behavioral Problems Index to measure socioemotional well-being. We used ordinary least squares regressions to estimate between-child associations of amounts and types of parental debt with socioemotional well-being, net of a host of control variables, and regressions with child-specific fixed effects to estimate within-child associations of changes in parental debt with changes in socioemotional well-being, net of all time-constant observed and unobserved confounders. RESULTS: Greater total debt was associated with poorer child socioemotional well-being. However, this association varied by type of debt. Specifically, higher levels of home mortgage and education debt were associated with greater socioemotional well-being for children, whereas higher levels of and increases in unsecured debt were associated with lower levels of and declines in child socioemotional well-being. CONCLUSIONS: Debt that allows for investment in homes (and perhaps access to better neighborhoods and schools) and parental education is associated with greater socioemotional well-being for children, whereas unsecured debt is negatively associated with socioemotional development, which may reflect limited financial resources to invest in children and/or parental financial stress. This suggests that debt is not universally harmful for children's well-being, particularly if used to invest in a home or education.

Young, Black, and (Still) in the Red: Parental Wealth, Race, and Student Loan Debt.

Taking out student loans to assist with the costs of postsecondary schooling in the US has become the norm in recent decades. The debt burden young adults acquire during the higher education process, however, is increasingly stratified with black young adults holding greater debt burden than whites. Using data from the NLSY 1997 cohort, we examine racial differences in student loan debt acquisition and parental net wealth as a predictor contributing to this growing divide. We have four main results. First, confirming prior research, black young adults have substantially more debt than their white counterparts. Second, we find that this difference is partially explained by differences in wealth, family background, postsecondary educational differences, and family contributions to college. Third, young adults' net worth explain a portion of the black-white disparity in debt, suggesting that both differences in accumulation of debt and ability to repay debt in young adulthood explain racial disparities in debt. Fourth, the black-white disparity in debt is greatest at the highest levels of parents' net worth. Our findings show that while social and economic experiences can help explain racial disparities in debt, the situation is more precarious for black youth, who are not protected by their parents' wealth. This suggests that the increasing costs of higher education and corresponding rise in student loan debt are creating a new form of stratification for recent cohorts of young adults, and that student loan debt may be a new mechanism by which racial economic disparities are inherited across generations.

Flu and Finances: Influenza Outbreaks and Loan Defaults in US Cities, 2004-2012.

OBJECTIVES: We examined the association between influenza outbreaks in 83 metropolitan areas and credit card and mortgage defaults, as measured in quarterly zip code-level credit data over the period of 2004 to 2012. METHODS: We used ordinary least squares, fixed effects, and 2-stage least squares instrumental variables regression strategies to examine the relationship between influenza-related Google searches and 30-, 60-, and 90-day credit card and mortgage delinquency rates. RESULTS: We found that a proxy for influenza outbreaks is associated with a small but statistically significant increase in credit card and mortgage default rates, net of other factors. These effects are largest for 90-day defaults, suggesting that influenza outbreaks have a disproportionate impact on vulnerable borrowers who are already behind on their payments. CONCLUSIONS: Overall, it appears there is a relationship between exogenous health shocks (such as influenza) and credit default. The results suggest that consumer finances could benefit from policies that aim to reduce the financial shocks of illness, particularly for vulnerable borrowers.

Getting sick and falling behind: health and the risk of mortgage default and home foreclosure.

BACKGROUND: An emerging literature shows that mortgage strain can lead to poor health outcomes, but less work has focused on whether and how health shocks influence mortgage distress. We examine the link between changes in health status and default/foreclosure risk among older middle-aged adults. METHOD: We used National Longitudinal Study of Youth 1979 data and multivariate logistic regression models to examine the relationship between changes in health limitations and chronic conditions across survey waves and risk of mortgage default and foreclosure. RESULTS: We found that changes in health limitations and chronic conditions increased the risk of default and foreclosure between 2007 and 2010. These associations were partially mediated by changes in family income and loss of health insurance. CONCLUSIONS: From a policy perspective, the strong link between the onset of illness and foreclosure suggests a need to re-examine the safety-nets that are available to individuals who become ill or disabled.

Mental health in the foreclosure crisis.

Current evidence suggests that the rise in home foreclosures that began in 2007 created feelings of stress, vulnerability, and sapped communities of social and economic resources. Minority and low SES communities were more likely to be exposed to predatory lending and hold subprime mortgages, and were the hardest hit by the foreclosure crisis. Little research has examined whether and how the foreclosure crisis has undermined population mental health. I use data from 2245 counties in 50 U.S. states to examine whether living in high foreclosure areas is associated with residents' mental health and whether the foreclosure crisis has the potential to exacerbate existing disparities in mental health during the recessionary period. I use county-level data from RealtyTrac and other data sources, and individual-level data from the Behavioral Risk Factor Surveillance Survey from 2006 to 2011. I find that - net of time invariant unobserved between-county differences, national time trends, and observed confounders - a rise in a county's foreclosure rate is associated with a decline in residents' mental health. This association is especially pronounced in counties with a high concentration of low SES and minority residents, which supports the perspective that the foreclosure crisis has the potential to exacerbate existing social disparities in mental health.

The home foreclosure crisis and rising suicide rates, 2005 to 2010.

OBJECTIVES: We examined the association between state-level foreclosure and suicide rates from 2005 to 2010 and considered variation in the effect of foreclosure on suicide by age. METHODS: We used hybrid random- and fixed-effects models to examine the relation between state foreclosure rates and total and age-specific suicide rates from 2005 to 2010 (n = 306 state-years). RESULTS: Net of other factors, an increase in the within-state total foreclosure rate was associated with a within-state increase in the crude suicide rates (b = 0.04; P < .1), and effects were stronger for the real estate-owned foreclosure rate (b = 0.16; P < .05). Analysis of age-specific suicide rates indicated that the effects were strongest among the middle-aged (46-64 years: total foreclosure rate, b = 0.21; P < .001; real estate-owned foreclosure rate, b = 0.83; P < .001). Rising home foreclosure rates explained 18% of the variance in the middle-aged suicide rate between 2005 and 2010. CONCLUSIONS: The foreclosure crisis has likely contributed to increased suicides, independent of other economic factors associated with the recession. Rising foreclosure rates may be partially responsible for the recent uptick in suicide among middle-aged adults.

Weight change and depression among US young women during the transition to adulthood.

By using data from wave 2 (in 1996) and wave 3 (in 2000-2001) of the US-based National Longitudinal Study of Adolescent Health, we investigated the association between young women's body weight and depression during the transition to adulthood. Respondents (n = 5,243) were 13-18 years of age during wave 2 and 19-25 years of age during wave 3. We used Center for Epidemiologic Studies Depression Scale scores to classify young women as never depressed, consistently depressed, experiencing depression onset, or experiencing depression recovery from wave 2 to wave 3. Results from adjusted multinomial logistic regression models indicated that respondents who experienced significant weight gain were at risk of depression onset. Normal weight (adjusted odds ratio = 2.10, 95% confidence interval: 1.14, 3.84) and overweight (adjusted odds ratio = 1.86, 95% confidence interval: 1.15, 2.99) adolescent girls who were obese by young adulthood, as well as young women who were consistently obese during adolescence and young adulthood (adjusted odds ratio = 1.97, 95% confidence interval: 1.19, 3.26), had roughly twice the odds of depression onset as did young women who were never overweight. We concluded that weight gain and obesity are risk factors for depression onset during the transition to adulthood. Policies prioritizing healthy weight maintenance may help improve young women's mental health as they begin their adult lives.

Depressive symptoms and all-cause mortality in a nationally representative longitudinal study with time-varying covariates.

OBJECTIVE: To examine the relationship between depressive symptoms and all-cause mortality in a longitudinal study with a nationally representative sample. Research has shown that depressive symptoms increase mortality risk, but results have been inconclusive regarding the role of physical health conditions in the relationship. This study asks whether the association between depressive symptoms and mortality exists independent of contemporaneous physical health conditions, is spurious because of prior physical health conditions, or is mediated by later physical health conditions. METHODS: Data are drawn from the Americans' Changing Lives Study, a sample of 3617 noninstitutionalized Americans aged 25 years or older. Respondents were interviewed in 1986, 1989, 1994, and 2002. Depressive symptoms (Center for Epidemiologic Studies Depression Scale [CES-D]), physical health, and confounders were measured at each wave. Mortality status was ascertained yearly through 2007. Discrete time hazard models with time-varying covariates were used to estimate the association between CES-D scores and mortality. RESULTS: Between 1986 and 2007, 1411 survey respondents died. Depressive symptoms were associated with mortality after adjusting for stress, coping characteristics, social support, and health behaviors (odds ratio [OR] = 1.23, 95% confidence interval [CI] = 1.11-1.36, p < .001). However, the association became nonsignificant after accounting for contemporaneous physical health conditions (OR = 1.06, 95% CI = 0.95-1.17, p = .31). Prior physical health conditions did not explain the association (OR = 1.24, 95% CI = 1.11-1.39, p < .001). The association between lagged depressive symptoms and mortality was mediated by later physical health conditions (p = .94). CONCLUSIONS: Study findings support the mediation hypothesis. The effect of depressive symptoms on mortality is mediated by later physical health.

THE IMPACT OF SEXUAL HARASSMENT ON DEPRESSIVE SYMPTOMS DURING THE EARLY OCCUPATIONAL CAREER.

Sexual harassment has been theorized as a stressor with consequences for the physical and mental health of its targets. Though social scientists have documented a negative association between sexual harassment and mental health, few longitudinal studies have investigated the association between sexual harassment and depressive symptoms. Using longitudinal survey data from the Youth Development Study, combined with in-depth interviews, this article draws on Louise Fitzgerald's theoretical framework, stress theory, and the life course perspective to assess the impact of sexual harassment on depressive affect during the early occupational career. In support of Fitzgerald's model, our findings confirm that sexual harassment is a stressor that is associated with increased depressive symptoms. Our quantitative results show that women and men who experience more frequent sexual harassment at work have significantly higher levels of depressed mood than non-harassed workers, even after controlling for prior harassment and depressive symptoms. Moreover, we find evidence that sexual harassment early in the career has long-term effects on depressive symptoms in adulthood. Interviews with a subset of our survey respondents point to a variety of coping strategies and reveal further links between harassment and other aspects of mental health, such as anger and self-doubt.

Does intergenerational mobility shape psychological distress? Sorokin revisited.

Drawing from Sorokin's hypothesis that socially mobile individuals are at greater risk of experiencing psychological distress than their non-mobile counterparts, we investigate whether intergenerational occupational mobility influences psychological distress, as measured by the Center for Epidemiologic Studies Depression (CES-D) scale. Using data for men from the Wisconsin Longitudinal Study (WLS) and Sobel's Diagonal Mobility Models, we find little evidence for Sorokin's hypothesis; mobile individuals are no more likely to be psychologically distressed than their non-mobile counterparts. In fact, one group of mobile men - those who left their farming origins - are actually less distressed than the sons who remain as farmers and non-mobile men in higher-ranked social classes. We speculate that this reflects the fact that farming became very arduous during the late 20th century and these mobile sons of farmers appreciate their improved life chances. Our findings suggest that the association between mobility and psychological distress varies across specific class backgrounds and is contingent upon the broader social and economic context.