Overcoming a Financial Disorder: What We Can Learn and How to Overcome

Money disorders such as chronic gambling, hoarding and impulse control disorders like compulsive spending, can be found in the Diagnostic and Statistical Manual of Mental Disorders , which is used by mental health professionals to make a diagnosis.  Sally Palaian, a licensed psychologist and author of the book Spent: Break the Buying Obsession and Discover Your True Worth, says money disorders have been recognized as a mental health issue for just 15 years — making them a relatively new area of study.  While there isn’t much in the way of data as far as how many people have them, study after study has shown for years that money is closely linked with stress.  In addition, the American Psychiatric Association says roughly 2% to 6% of the population has clinically significant hoarding behavior.

While Mallory knows she has a hoarding problem, she has chosen to deal with it on her own and not seek professional help.  “I’m approaching my hoarding like I would approach professional development,” she says.  “I’ve studied it, I’ve put into practice what I’ve learned, and I think I have it under control,” she adds.

Mallory’s not alone.  Research has shown that Blacks seek out mental health services at a much lower rate that Whites.  A study of the American Psychological Association (APA) called “Race Differences in the Receipt of Mental Health Services Among Young Adults,” found that young adult Blacks, especially those with higher levels of education, are significantly less likely to seek mental health services than their white counterparts.

“Past research has indicated people with higher education levels are more likely to seek out and receive mental health services. While that may be true for whites, it appears the opposite is true for young adult blacks,” said study author Clifford L. Broman, PhD, of Michigan State University in an APA release.

Stigma, lack of knowledge, trust and cultural understanding were key barriers to using mental health services, according to previous research with focus groups of blacks, Broman said.  Researchers also point out that low income Blacks have less access to mental health services in their communities.

Experts say, when it comes to money disorders, not getting the help you need comes at quite a cost. Mallory says her fear of spending kept her from hiring a strategic consultant for her public-speaking business. Consequently, she lost out on book deal and a $300,000 advance.

“Money disorders need to be diagnosed and treated by a licensed mental health professional,” says Klontz.

If you or someone you know thinks they may have a money disorder do the following:

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