The high cost of a high APR: Physicians link debt to depression

Michael Jackson's hit single "Thriller" scared the pants off an entire generation, but when youngsters belonging to Generation Text, who hardly know the greatness of Jack-o, go to open the mailbox, it can be more frightening than the late pop icon's most botched plastic surgery. Looking into the mailbox and finding a stack of overdue bills and credit statements can irk even the most level-headed individual. The fact of the matter is Americans are coming face to face with the horrors of suffocating debt.

"Since the economic recession really took a strangle hold on the housing market, the credit card bills went through the roof for us," said Jim Manschot, a licensed and certified general contractor of Arvada, Colorado. Choosing a credit card with a high APR without paying close enough attention to his agreement, Manschot nearly declared bankruptcy in early 2009. And, according to Manschot, the credit crunch has affected more than his checking account.

"Well, for me it's been tough to provide for my family and keep my head above water," he said. "But what's really hurt us more than anything is my wife's meltdown."

After losing her job in 2008 to a second round of layoffs, Marci Manschot was out of work and on unemployment for six months. "During that time I became depressed and started getting really out of control," she said. "You know, threatening to take the kids and drinking a lot... just really down in the dumps."

To get a handle on Marci's degrading mental state, the Manschots went to their family doctor. After the first visit, she was diagnosed with anxiety and depression. They walked out of the doctor's office with a prescription for Prozac, and since then, the Manschot household has found more stability. But, the debt is still pilling up, and Marci has had to steadily up her dosage almost at the same rate as their cards' interest rates.

The Manschots aren't the only ones experiencing this phenomenon.

In the first quarter of 2010, the Federal Reserve Statistical Release reported a staggering $2,536,300,000,000.00 total in consumer debt. That's a lot of zeroes, and it seems that many Americans are considering themselves just that, a zero.

With a population of nearly 305 million according to the 2009 Census, that works out to roughly $8,300.00 of debt per American, and with mental disorders as the leading cause of disability in the United States according to the National Institute for Mental Health (NIMH), professionals believe there is a relationship between debt and despair. Even the king of pop, who made millions of dollars with his infectious music, went through his own battle with debt and depression, for which his physician was prescribed him plenty of sedatives and anti-depressants.

Other physicians across the country are encountering a similar problem.

"Absolutely, there is a direct relationship between the amount of debt one has and the level of stress they may be experiencing," said Dr. Kenneth Hahn of Arbor Family Medicine. "What's most crucial to pay attention to is how long you've been experiencing debt related stress, because the longer it goes unchecked the more likely a person can go from a minor case of anti-social disorder, for example, and have it develop into paranoid schizophrenia."

But, according to Dr. Hahn, both debt and despair can be managed.

"It's important to control debt so it doesn't control you," he said. "There's power in control and plenty of resources out there to empower yourself out of depression rather than use medication as an end all be all."

Unfortunately for Michael Jackson, medication is widely believed to be his unofficial end all be all, which serves as a grim example of why choosing a credit agreement that has a low APR, and managing your money wisely won't send you flying "off the wall."

For more information on managing debt-related stress, depression, anxiety, and a helpful list of warning signs visit http://www.nihm.nih.gov and http://www.afsp.org. A physician should be contacted immediately if you are becoming self destructive or if you see self destructive behavior in others.