Psychological distress, financial literacy, loneliness, and coping in relation to financial difficulties: a cross-sectional study in Sweden

BACKGROUND: Many individuals experience recurring or anticipated difficulties in meeting essential financial obligations, such as paying bills. Financial difficulties are associated with a range of adverse outcomes and are influenced not only by objective economic conditions but also by psychological factors, including psychological distress, loneliness, coping strategies, and financial literacy, which may shape how individuals perceive, manage, and respond to their financial situation. Against this background, it is important to further examine the economic and psychological factors associated with financial difficulties. METHOD: The present cross-sectional study examined whether financial literacy, psychological distress, loneliness, and coping were associated with financial difficulties, operationalised as recurring difficulties paying bills during the past 12 months and expected difficulties paying bills in the upcoming two months. Data was collected through an online questionnaire completed by 2,035 adults aged 18-96 during the autumn of 2024. Logistic regression analyses were conducted to identify variables independently associated with financial difficulties when considered simultaneously. RESULTS: The analyses showed that financial literacy, psychological distress, loneliness, and avoidant coping were independently associated with both outcomes. CONCLUSIONS: This study examines contemporaneous associations between economic and psychological variables and self-reported financial difficulties. The cross-sectional design precludes conclusions regarding causality. Further longitudinal research is needed to clarify the direction and nature of these relationships.