What is Financial Hardship

Financial distress is a multidimensional and complex subject. Financial distress has physical and physiological effects and harmful consequences for individuals and families, ranging from unpaid debts and deteriorating health to suicide. For this reason, it has been a widely researched subject by different branches of science such as finance, psychology, and sociology. In this study, financial distress was examined from a subjective point of view. The effect of financial distress on physical and psychological health, its effect on families and children, and the effect of social support and socio-economic status on financial distress were investigated. The role of financial capability and financial resilience in reducing financial distress was emphasized. This study aimes to consolidate and expand knowledge about financial distress. The issue of financial distress has been extensively researched under the behavioral finance framework.