Usury and its mental health ramifications : a professional’s perspective

Abstract

This dissertation aims to investigate the link between usury and mental health, with a particular emphasis on the impact of high-interest lending practices on victims of usury. The study examines how high-interest lending practices contribute to anxiety, depression, and other mental health problems, drawing on a wide range of theoretical and empirical sources, including interviews with professionals who worked with victims who experienced the mental health ramifications of usury. Loan sharking is prevalent in Maltese culture, and from a study conducted in 2016 by Caritas Malta, it appears to have expanded from 2006 onwards. Also, it has been found that there are a variety of reasons why people resort to illegal money lending, with the three most common being drug issues, gambling addictions, and poverty. In addition, there are families in Malta that live hand to mouth and must borrow money when faced with a financial emergency, such as an unexpected sickness. Frequently, people do so without realising what they are getting themselves into. Another research published in 2022 by Mintoff and Vella, Usury has been also identified as a serious problem in Malta. Through-out their research they analysed the topic of usury within the Maltese context, highlighting the prevalence of usurious lending practices and their influence on the local economy. Income inequality, high levels of household debt, and restricted access to inexpensive credit have all been mentioned as socioeconomic variables that contribute to individuals' vulnerability to usury. [...]