Author ORCID Identifier
Date Available
12-11-2025
Year of Publication
2025
Document Type
Doctoral Dissertation
Degree Name
Doctor of Philosophy (PhD)
College
Agriculture, Food and Environment
Department/School/Program
Family Sciences
Faculty
Donald Bruce Ross, III.
Faculty
Alexander Vazsoyni
Abstract
Average households in the United States holds $101,915 in consumer debt, contributing to the greater total of America’s $17.3 trillion of total consumer debt (Experian, 2024). Accruing some amount of debt is considered normal throughout a financial lifespan, however, many Americans find themselves completely overwhelmed by keeping up with personal debts and increasing costs of necessities due to inflation. (George & Hansen, 2018; Kim et al., 2019). Following the financial crisis in 2020, many individuals felt increasing financial hardship, with many Americans heavily impacted by their debt holdings. The purpose of the present study is to examine the impact of debts over time on an individual’s overall psychological stress, spending habits, and life satisfaction over a decade period.
Data from the present study were collected from years 2011 – 2021 in the Panel Study of Income Dynamics (PSID), a database housed at the University of Michigan. A series of Structural Equation Modelling (SEM) were conducted to examine the mediating relationships between debt type, psychological stress, spending habits, and life satisfaction. The present study also includes Latent Growth Curve Models (LGCM) to track changes over time in psychological stress, and life satisfaction. The present study is informed by Family Stress Theory, as well as the Compensatory Consumption Theory.
The present study found significant pathways between debt holdings and life satisfaction, both directly and with psychological stress and spending habits as mediators, in partial support of the hypotheses. However, the data did not show stronger relationships between any debt-to-income ratios and life satisfaction either directly or mediated by psychological stress and necessary and leisurely spending. Further research should explore more specific financial aspects of stress and how that would act as a mediator between debt holdings, spending habits, and life satisfaction. Additionally, further research is needed to gain clearer insight into how the economic climate impacts the individual, and the role it plays in the relationships between debt holdings, psychological stress, spending habits, and life satisfaction.
Digital Object Identifier (DOI)
https://doi.org/10.13023/etd.2025.577
Recommended Citation
Johnson, Emily, "DEBT THROUGH THE DECADE: EXPLORING CONNECTIONS BETWEEN DEBT TYPE, PSYCHOLOGICAL STRESS, SPENDING HABITS, AND LIFE SATISFACTION" (2025). Theses and Dissertations--Family Sciences. 124.
https://uknowledge.uky.edu/hes_etds/124
