Debt, credit payment holidays, and their relationship with mental health during the COVID-19 pandemic in the United Kingdom

Publication type

Journal Article

Authors

Publication date

November 1, 2023

Summary:

Although the relationship between debt and mental health is well documented, little is known about how changes in debt status and the specific policies implemented to assist borrowers during the COVID-19 pandemic have impacted the mental health of men and women. Particular attention is paid to the implementation of a non-neoliberal “credit payment holiday” scheme during the pandemic in the United Kingdom. Data come from three waves of the Understanding Society COVID-19 surveys. We use panel data models to assess the relationship between change in the presence of unsecured debt, credit payment holiday, and psychological distress (12-item General Health Questionnaire [GHQ-12] Likert score), controlling for confounders. The presence of debt is associated with significantly higher psychological distress, and the pattern is particularly pronounced for women than for men. Among the indebted population, the results show that credit payment holiday can significantly buffer the negative mental health effect of debt. While the buffering effect is larger for women, it is not significantly different across genders. The relationship between debt and mental health remains significant throughout the pandemic, but the credit payment holiday scheme has played a significant role in attenuating it and could be implemented as a policy tool outside the pandemic context.

Published in

Society and Mental Health

Volume and page numbers

Volume: 13 , p.227 -244

DOI

https://doi.org/10.1177/21568693231169783

ISSN

21568693

Subjects

Notes

Open Access

© American Sociological Association 2023.

This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access page (https://us.sagepub.com/en-us/nam/open-access-at-sage).

Covered by over 10 media outlets


Related Publications

#557787

News

Latest findings, new research

Publications search

Search all research by subject and author

Podcasts

Researchers discuss their findings and what they mean for society

Projects

Background and context, methods and data, aims and outputs

Events

Conferences, seminars and workshops

Survey methodology

Specialist research, practice and study

Taking the long view

ISER's annual report

Themes

Key research themes and areas of interest