Those who are struggling with debt have a lot of problems on their hands, likely including calls from debt collectors. People who are worried about not being able to pay the bills are also under a lot of stress, which can adversely affect health.
The consequences of debt-collector harassment and of financial stress are all-too apparent to those who are currently having money problems. However, a new study shows that there may be another very personal and very important consequence to financial insecurity: a drop in IQ points. Fact of the matter is that money problems touch every area of your life and a bankruptcy lawyer in South Carolina can help in resolving debt problems and putting such stress behind you.
Financial Stress Can Have an Impact On Brain Power
CBC News reported on the recent study examining the link between brain function and financial worries. The study tested the impact of financial issues on around 400 shoppers at Quaker Bridge Mall in central New Jersey and tested the impact of money issues on farmers in India.
In the New Jersey shopping mall, scientists presented the shoppers with different scenarios involving both a large auto repair bill and a small auto repair bill. The shoppers then took tests including a traditional IQ test as well as other tests focused on various aspects of thinking.
The research was somewhat surprising. Individuals answering the questions who made around $20,000 in family income annually scored about the same on the IQ tests and other tests of cognitive function as those who made $70,000 when scientists showed the shoppers the small repair bill. However, if those with incomes at $20,000 or under were presented with the larger repair bill, their IQ scores fell as much as 13 points.
Researchers determined that this discrepancy must be tied to the big car bill and the financial issues that would come along with it. Educational differences do not explain the discrepancy, according to the CBC, because the lower-income individuals only suffered a drop in IQ scores if faced with big bills.
Based on this information, the scientists concluded that struggling to pay the bills or struggling to make ends meet has a significant impact on cognitive functionality. One reason why this may be the case is that financial stress associated with having limited or no money monopolizes the brain. Sendhil Mullainathan, a Harvard economist who co-authorized the study, reportedly said: “If you are always thinking about overdue bills, a mortgage or rent, or college loans, it takes away from your focus on other things. So being late on loans could end up costing you both interest points and IQ points.”
Like when trying to think with insufficient sleep, the brain is not able to work as well as it should if you are using your mind and your energy to think about the financial issues you face. Unfortunately, this means that bad decisions made when facing financial stress could actually make your money situation worse.
To help relieve stress, relieve financial problems and improve your financial situation, bankruptcy may be the answer.
A bankruptcy lawyer in South Carolina can help if you are facing debt problems. Contact the Columbia, South Carolina attorneys at Matthews & Megna today at 877-253-7705.