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Becoming Debt Free Can Make you Smarter

Jennifer Croft

Jennifer Croft

Did you know becoming debt free can actually make you smarter? There is some research that suggests a positive connection between getting rid of the stress from debt and an increase in IQ levels. Granted the studies are limited and more research is needed to confirm this link but it’s exciting to read about. Here are some Canadian and American studies that have examined the impact of debt on cognitive function and IQ levels.

What the Research Says

One Canadian study published in the Journal of Economic Psychology in 2019 found that financial stress, including debt-related stress, was associated with lower cognitive function. The study found that individuals with higher levels of financial stress performed worse on cognitive tests, including tests of memory, attention, and decision-making.

Another Canadian study published in the Journal of Family and Economic Issues in 2018 found that financial stress was negatively associated with cognitive ability among older adults. The study found that older adults who reported higher levels of financial stress had lower cognitive function scores, including scores on tests of memory and executive function.

A study conducted in the United States and published in the journal Social Science & Medicine in 2017 found that individuals with higher levels of debt had lower cognitive performance than those with lower levels of debt. The study found that debt-related stress was a significant predictor of cognitive function, with individuals experiencing higher levels of stress performing worse on cognitive tests.

The reverse then seems to be true. If we can remove the stress of debt from our lives, our ability to perform tasks might significantly improve. It’s important to note that seeking help to manage debt-related stress and emotional health issues can have a positive impact on overall well-being, including cognitive function. By taking steps to manage debt-related stress, individuals may be able to improve their overall cognitive function and IQ levels.

If you want to become debt free, reach out to us for a free consultation. 

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CreditLift founders are considered experts in their field and have been interviewed by both local & national news networks related to debt and financial literacy.