Mind Over Money: The Hidden Influence of Mental Health on Debt Management

Shen Yu; Wei-Huei Hsu; Jiali Fang

doi:10.2478/fprj-2026-0011

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Mind Over Money: The Hidden Influence of Mental Health on Debt Management

Financial Planning Research Journal

Volume 12 (2026): Issue 3 (September 2026)

By: Shen Yu, Wei-Huei Hsu and Jiali Fang

Open Access

|Jul 2026

Abstract

This study examines how mental health influences debt behaviours using probit regression, Oaxaca decomposition and data from the ANZ New Zealand Financial Wellbeing Survey 2021. Results show that mental health has no significant effect on short-term debt use but is associated with lower engagement in long-term debt. Financial accessibility emerges as a key explanatory factor, while early parental financial guidance helps offset the negative impact of poor mental health. The findings underscore the need for inclusive financial policies that enhance access to credit and integrate financial education with mental health support, particularly for vulnerable populations.

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Articles in this issue

DOI: https://doi.org/10.2478/fprj-2026-0011 | Journal eISSN: 2206-1355 | Journal ISSN: 2206-1347

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Language: English

Published on: Jul 21, 2026

Published by: Financial Advice Association of Australia

In partnership with: Paradigm Publishing Services

Publication frequency: 2 issues per year

Keywords:

BNPL,

Related subjects:

Business and economics,

Political economics,

Economic theory, systems and structures,

Business management,

Business management, other,

Industries,

Banks, financial service provider, insurers

© 2026 Shen Yu, Wei-Huei Hsu, Jiali Fang, published by Financial Advice Association of Australia
This work is licensed under the Creative Commons Attribution 4.0 License.

Volume 12 (2026): Issue 3 (September 2026)