Research
Employee Financial Distress
The Consequences of Financial Stress for Individuals,
Families, and Society, 2004, Carleton University, Davis & Mantler
Executive Summary
In this report we summarize what is known about the effects of economic
hardship and financial stress based on research in the psychological literature,
particularly as it relates to bankruptcy.
More Canadian families may be living near the financial breaking point than at
any time since the Great Depression. In 2003, there were more than 84,000
consumer bankruptcies in Canada, and an additional 18,000 consumer proposals
filed to help people deal with their financial situation. If it is true that most people
who seek bankruptcy protection do so as a last resort, after living in debt crisis
for years on end, then these Canadians represent only a small proportion of
Canadian families who are living under considerable financial stress.
Given the frequency with which bankruptcy occurs, it is surprising that almost no
research has been conducted on the social and psychological effects of
bankruptcy. Instead, in order to understand some of the possible consequences
of bankruptcy, we draw on research on the effects of financial stress, often as a
result of job loss or unemployment. Read more (PDF)... |
