Parental debts can disrupt the socio-emotional well-being of children. Strong ones have less impact than more unstable ones, like consumer credit.
Debt does not have the same consequences for all children. An American study shows that the type of debt that parents have contracted influences their emotional well-being. A mortgage or a student loan affects their mental health less, conclude the results published in Pediatrics.
This work focuses on 9,000 children (5-14 years) followed between 1986 and 2008, with an annual or biennial assessment. The indebtedness of their parents was analyzed according to their main characteristic (medical expenses, car loan, etc.) and the fact that they belong to a “stable” or “unstable” debt – the second being distinguished by the fact of not being attached to no solid investment.
General analysis shows that borrowing is generally harmful to the well-being of children. But the second type of debt turns out to be more deleterious than a lasting investment – like a mortgage. Young people have a lower socio-emotional score. According to the researchers, this is due to a higher level of stress and anxiety on the part of the parents, which disrupts education.
A double-edged sword
Conversely, investing in stone or education would be rather beneficial. “It seems intuitively logical that a debt that helps to improve social status or an investment (…) could lead to better results, while a debt that is unrelated to these investments can be more harmful ”, analyzes Jason Houle, principal author. This sociologist compares consumer loans to a double-edged sword: in the short term, they make it possible to fill a deficit. But in the long run, they upset the family balance and interest rates tend to explode.
The trend in household debt – measured by the National Institute for Statistics and Economic Studies (Insee) – confirms this: between 2005 and 2015, debts increased by 44% – to reach 1.189 billion euros. The first cause, however, remains the rise in real estate prices. The second is more worrying: consumer credit offers are on the increase.
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