Published On: April 18, 2019

Ever wonder why you make really stupid decisions, especially when you are overwhelmed, worried or distracted?

Perhaps you are focused on one task, like dealing with a difficult child or employer, and you completely miss a really important appointment or buy something you did not want.The researchers at Princeton, Harvard and the University of Warwick ran experiments on low-income people who were worried about debt and found they lost 13 IQ points (somewhat like when you lose a night’s sleep and feel really stupid the next day).  In this report in Science Magazine they say this loss in IQ points is the same as the difference between chronic alcoholics and normal adults.

You might be told that being in debt shows weakness or irresponsibility, but that is definitely not so.

Eldar Shafir, one of the authors of the study, write ““coping with not just a shortfall of money, but also with a concurrent shortfall of cognitive resources.”  In simple English this means that dealing with debt reduces your mental ability to handle other tasks “it makes you stupid”.

Do you wonder why you miss a turn when driving or fall in a hole while walking?

It is because you were concentrating on something else – talking, texting, listening to a talk show.  The problem is that we have a limited amount of mental bandwidth, so doing one task reduces our ability to do another.  Hence, why car accidents are more likely to happen when someone is on the cell phone.

Those in debt are spending more of their mental bandwidth on finding a better job, better place to live or going to night school which reduces their attention to staying on their food budget or remembering to change the oil in their vehicle.

“When your bandwidth is loaded, in the case of the poor,” Shafir says, “you’re just more likely to not notice things, you’re more likely to not resist things you ought to resist, you’re more likely to forget things, you’re going to have less patience, less attention to devote to your children when they come back from school.”

The solution?

Reduce the distractions – such as dealing with debt.  Perhaps bankruptcy is the doorway to regaining your full mental capacity.  Which means you will have more time to be with family or be a better employee (keep your job) and plan for a more relaxed future.

Never use your vehicle to secure a loan, or take out a payday loan – you are making that decision at a time you are not thinking clearly.

taxes

Being in Debt Actually Makes You Stupid.

Stress kills or increases risk of heart attack, depression, infertility and premature aging

612% interest for payday loans – Senate Hearing to Examine Payday Lending and Small Dollar Credit Industry

Images courtesy of Pixabay

MUSINGS BY DIANE:

We have all made really stupid choices in life – some we learned from and others we were doomed to repeat until we decided to stop.  Now is the time to find ways to make smarter decisions – surround yourself with happy, self-sufficient people.  Life cannot be lived by yourself (or should not be).

If you open your heart and head you will find the answer – but you have to look.

By |Published On: April 18th, 2019|Last Updated: July 14th, 2022|

Share this article

About the Author: Diane Drain

Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*

Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau
5 / 5

“You folks are the BEST OF THE BEST in Arizona.” M.H.

You and Jay are the best attorneys I have ever had or needed and thank God for the Honorable Robert Gottsfield in recommending you folks – I would have never made it through the entire process without you and Jay and God Bless you both always and stay in touch as well. You folks are the BEST OF THE BEST in Arizona.

5 / 5

“My only regret is that I didn’t find Diane sooner.” K.H.

I can’t say enough good things about Diane. The way she handled my not typical circumstances was amazing. I was very nervous to start the bankruptcy process but Diane just has a very comforting way of explaining the whole process. My only regret is that I didn’t find Diane sooner. If you find yourself in a financial situation that you can’t correct on your own, please Call Diane Drain as soon as possible.

5 / 5

“Filing for bankruptcy can be a stressful life event” R.A.

Filing for bankruptcy can be a stressful life event, and selecting the right attorney can add to this stress. Diane and Jay were a pleasure to work with, and it is obvious that they are passionate about helping people get their life back on track. I would highly recommend them if you need a bankruptcy attorney.

Related Posts

  • Published On: July 24, 2022

    Want to avoid dishonest debt collectors?  Watch this video from FTC’s Consumer Advice By Joseph Ferrari,July 22, 2022 (reprint from FTC, Consumer Alerts) During Military Consumer Month 2022, the FTC [...]

  • Published On: July 20, 2022

    BEWARE OF THE SECRET COSTS OF USING ‘BUY NOW PAY LATER’!! What You May Not Know About These Services Services like “buy now pay later” now account for $100 [...]

  • Published On: June 19, 2022

    RELIGION AND BANKRUPTCY Bankruptcy has its roots in religion. No one should avoid dealing with debt because of misunderstandings about religious or ethical considerations. It is NOT shameful to seek relief from crushing debt! [...]

  • Published On: April 18, 2022

    Education Loans Can Be Discharged in Bankruptcy Busting myths about bankruptcy and private student loans By Robert G. Cameron – APR 12, 2022 (Reprint from Consumer Financial Protection Bureau "www.CFPB.gov".  The following is an [...]

My intention is to put you back in control of your life
Start with $0 down*. We provide affordable payment plans.

FREE CONSULTATION