Ashford writes: "If you've ever felt like financial stress was bringing you down, you might be interested in the findings of a new study. In an analysis of data from 2,011 survey respondents, researchers discovered that 23% of respondents were experiencing symptoms commonly associated with post-traumatic stress disorder related to their finances."



Food bank in an African-American community. (photo: Lucy Nicholson/Reuters)

1 in 4 Americans Have PTSD-Like Symptoms From Financial Stress

By Kate Ashford, Forbes

f you’ve ever felt like financial stress was bringing you down—in a big way—you might be interested in the findings of a new study from Payoff, a financial wellness company. In an analysis of data from 2,011 survey respondents, researchers at Payoff discovered that 23% of respondents were experiencing symptoms commonly associated with post-traumatic stress disorder (PTSD) related to their finances. Among Millennials, the number is 36%.

“It was not something I expected at all,” says Galen Buckwalter, Ph.D., chief science officer at Payoff. “But we kept seeing it emerge in sample after sample. There’s been a lot of research looking at the financial stressors out there, but from a psychological perspective, no one’s turned it around and looked at the actual symptoms people are experiencing.”

Among other things, survey respondents were worried about being homeless or were routinely late on payments. Others denied the severity of their debt or the reality of paying it off. People’s behaviors were irrational and motivated by denial and avoidance, leaving them less able to plan or manage their financial lives. “It was just this cluster of negative financial behaviors and fear,” Buckwalter says. “And when you look at the diagnostic criteria for PTSD, it lines up with what we were seeing—the denial, the avoidance, the hypervigilance, the nightmares. It was all there.”

The Payoff team labeled the condition Acute Financial Stress, or AFS, and they seem to have hit a nerve. “I’ve gotten 20 emails from people that I know, established professionals, telling me how they’ve been living with AFS,” Buckwalter says. “It is pretty staggering, frankly, that this percentage of America is experiencing a diagnosable mental health condition resulting from their finances.”

Considering the state of America’s money, however, maybe the surprising thing is that this issue hasn’t come up more often. The folks at Payoff point to stagnant incomes, nonexistent savings, high debt levels and financial ordeals such as defaults and evictions. ”These findings should trigger alarm bells for our society to address the challenges with debt millions are facing,” said Scott Saunders, founder and CEO of Payoff, in a press release.

If you’re wondering whether you fit the financial PTSD mold, Payoff offers a brief questionnaire to gauge your mental state. You can find it at Payoff.com/stress.

If you determine that your level of financial stress is acute, however, your next step isn’t so clear. “I think the most immediate thing is to try to do something to bring the level of thinking down to a more consistent state where you’re able to start making the tough decisions that people have to do to live within this financial situation,” Buckwalter says.

How do you do that? Cognitive behavioral therapy is one strategy, in which a psychological professional would help you get your thinking and emotions and behaviors under control. “It’s not an effort to change the core problem, but to change the symptoms,” Buckwalter says.

Simple exercises might also help, such as replacing catastrophic thinking with more logical and positive self-talk. Payoff currently has a study under way of six exercises for people with AFS. “It seems that people are experiencing significant improvements in their thoughts, emotions and behaviors as a results of engaging in a regular manner with these exercises,” Buckwalter says. “So far we’re very pleased.”