Financial Stress and Mental Health: Basic Tools for Counsellors
By Bonnie Krisher, MEd (Counseling), CDA (K&G Debt & Credit)
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Financial stress is widespread and growing. It can have an extraordinary impact on the physical and mental health of individuals and families. New television programs such as Maxed Out have gained popularity in response to this modern crisis. Therapists are often in a position to recognize the stress related to family or personal finances in conversations with clients. This article aims to provide some basic information on resource and outsource for non-clinical debt.
A recent email was sent to my office by a woman obviously overwhelmed by financial stress. The final words in the email read as follows: “I just don’t know what to do some days, I think just ending my life would be better but I have four wonderful kids that I would leave behind so that does not seem to be a good solution. I have thought about bankruptcy but I don’t want to lose my house. Please help.”
As clinicians our objective is to assist our clients in discovering resources, and their ability to address concerns in their lives that hinder their ability to meet needs. How often as clinicians do we encounter issues in our client’s life that may be outside our area of practice? How many clients have reported financial issues to you that pose as a mitigating factor in their stress?
It is commonly understood that debt and financial burden have and continue to elicit an incredible amount of stress. This stress can produce other symptoms and behaviors such as depression, anxiety, drug or alcohol dependency, and violence. Stress and fear can also lead to social withdrawal, low self-esteem, divorce, and even suicide. Perhaps most commonly, this stress can lead to physicalor somatic complaints such as, headaches, hair loss, hypervigilance, insomnia, etc.
As advocates for our clients, we may be able to provide additional support to those who are struggling with debt than what our service may have currently entailed. Perhaps you have already discovered some options, but for the purpose of this article I will provide you with three:
- Factual information
- Coping skills
- Outside resources
Unfortunately, when a debtor becomes delinquent in her/his payments to creditors, there is very little room for compassion. It has become common practice for some creditors to utilize collection tactics that may not only beconsidered abusive in nature, but also against the law. I receive reports of these tactics every day, as well as witness their effect on my clients. These collection practices can intensify the negative affect on a family or an individual’s mental and physical health.
Several months ago, an individual contacted me and broke down in tears. She explained to me that she had just spoken with a collector who had threatened to come over and remove all of her household items as well as her CAT! She reiterated some of the verbal abuse that she had received and asked what she could do. I was able to not only provide some factual information for this client within a few short minutes, but I was also able to assist her in discovering a sense of self-empowerment through that information. It is often the unknown that creates the greatest amount of fear.
You may also be able to provide an enormous amount of relief for your clients by providing a basic information sheet to those who are overwhelmed by financial stress and looking for options. The following list on the next page includes some of the most common issues that we address within the first or second phone call with a debtor. You may wish to cut out or copy this information and provide it as a hand out to your clients.
In providing your clients with some factual information, and perhaps some direction on how to address the physical nature of their debt, you can then focus on addressing their resources and copings skills; therefore assisting the process of teasing apart what is addressed therapeutically and what can be addressed through information and life skills.
In assisting your clients in creating and accessing resources and coping skills, they will be better equipped in addressing the symptoms of stress or circumstances that are a result of past choices. Consequently you may also find the need to support your clients in addressing deeper issues of trauma and pain. This is a much more creative process and can incorporate spirituality, behavioral changes, somatic therapy and so much more.
Finally, as advocates for our clients, it is of the essence that we consider the value of referring out. Identify some of the most common concerns that your clients are struggling with and seek those individuals or companies that can help them. Keeping a list of service providers and their contact information is a very useful tool. It is important to recognize when a concern of our clients falls outside of our area of expertise and we are able to provide our clients with the opportunity to address those concerns.
Your list may consist of a Debt Arbitrator, physician, lawyer (who is willing to educate for free first), accountant, financial coach, or even a massage therapist if that ends up being a common complaint (this is often accompanied with somatic therapy or similar therapies). You may also find that these service providers encounter clients that can utilize your services. I also suggest visiting Dr. Jill Ammon-Wexler’s website at www.trans4mind.com/counterpoint/wexler5.shtml to learn about a basic five step plan to reduce financial stress.
As clinicians we are more than therapists, we are soldiers for the human spirit. Our work becomes great when we seek to move beyond what we are trained to do, and take the next step to enhance and diversify our ability to help our clients. It is that little bit more that can make all the difference in our clients’ lives as well as in our practice.
The writer can be reached at krisher
kgdebt
ca
USEFUL FACTS ABOUT ISSUES COMMONLY ADDRESSED WITH A DEBTOR
1. In the Business Practices and Consumer Protection Act, there is a three-page section under Part 7 called “DebtCollection.” This addresses harassment, disclosure, communication with a debtor, legal proceedings and more. This short section has by far been the most helpful in addressing client concerns.
2. What is the difference between secured and unsecured debt? An unsecured debt is a debt where there is no collateral. Unsecured debts include medical bills, credit cards, department store cards, personal loans, collection accounts, amounts remaining after a foreclosure or repossession, and bounced cheques. Secured debts include homes, automobiles, or loans secured against property.
3. Can I stop harassing calls? You have the right to stop all future collection attempts, prohibit bill collectors from calling you at work, prohibit late or really early calls to your home, and to make certain the money you do pay goes to the debt you want to pay.
4. What options are available to me in Canada? There are four options: Credit Counselling, Debt Consolidation, Debt Arbitration, Bankruptcy/Proposals. Investigate each thoroughly.
5. Will a creditor accept a lump sum settlement that is less than what I owe? Yes, creditors will accept a settlement offer. Contact a Debt Arbitration company for more information.
6. What is a credit report and are credit bureaus a government agency? Credit Bureaus are private companies that collect and compile information about consumer credit worthiness from banks and other creditors and from public record sources. These reports are then sold to creditors who are investigating your credit worthiness. They are required to be accurate and must investigate and change inaccuracies.
7. Can my credit report be repaired or rebuilt? Yes, most everything must be removed from your credit report after six years. You can rebuild your credit by keeping and using some form of credit and by paying off the balance each month. (Note that keeping old credit is better than obtaining new credit.) Make sure to remove all inaccuracies from your credit report and prevent being delinquent on any of your accounts. More tips can be obtained with a little bit of research or visit www.kgdebt.ca.
Bonnie Krisher, CDA
K&G Debt & Credit Professionals
President
www.kgdebt.ca
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