What could Financial Trauma mean?
Last time, I mentioned we would look at each of the criteria of psychological trauma and see how it may apply to financial trauma.
The DSM-5, (Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition) is the standard reference for diagnosing mental health disorders for therapists and psychologists, among other mental health professionals. Here’s how we know if someone has PTSD (Psychological trauma):
A Stressor:
Direct exposure
Witnessing the trauma
Learning that a relative or close friend was exposed to a trauma
Indirect exposure to aversive details of the trauma, usually in the course of professional duties (e.g., first responders, medics)
So what kind of stressors could cause Financial Trauma? Poverty, Financial neglect by parents or guardians, financial instability in childhood, financial instability or bankruptcy in young adulthood or adulthood, or a significant financial crisis that has long-term ramifications.
Intrusion Symptoms
Unwanted upsetting memories
Nightmares
Flashbacks
Emotional distress after exposure to traumatic reminders
Physical reactivity after exposure to traumatic reminders
Financial trauma might look like emotional distress, anxiety, worry, shame and guilt, feelings of failure, anger at oneself or others, and blaming external circumstances and hopelessness.
Avoidance:
Avoidance of trauma-related stimuli after the trauma, in the following way(s):
Trauma-related thoughts or feelings
Trauma-related external reminders
Avoidance might look like avoiding the mail, phone calls or other ways that creditors or debt collectors are trying to contact you. It might look like purchasing more things to make yourself feel better, trying to numb the feelings. It might even look like pursuing other forms of addiction - substances or social media (doom-scrolling).
Negative alterations in cognition and mood
Negative thoughts or feelings that began or worsened after the trauma:
Inability to recall key features of the trauma
Overly negative thoughts and assumptions about oneself or the world
Exaggerated blame of self or others for causing the trauma
Negative affect
Decreased interest in activities
Feeling isolated
Difficulty experiencing positive affect
These might look like hopelessness, feeling as though people are out to get you, self-recriminations for getting yourself into debt, feelings of inadequacy; Or blame shifting and anger at the predatory practices of credit cards.
Finally:
Alterations in arousal and reactivity
Irritability or aggression
Risky or destructive behavior
Hypervigilance
Heightened startle reaction
Difficulty concentrating
Difficulty sleeping
These seem very applicable to financial trauma: when under stress and pressure, increased irritability, aggression, difficulty sleeping or concentrating are all common responses to being financially burdened and in crisis.
Are these descriptors a little too familiar? Do you need help with the financial strain you’re under, and dealing with the emotional toll of a financial crisis? Contact me. I’m available to help.
