The Effect of Debt on Mental Health in the United Kingdom

There is no getting away from the fact that money and mental health are connected. Now, as the UK faces one of its most significant cost of living crises in decades, there is no doubt that people’s mental health will be hit. Is there any Connection Between Mental Health and Debt?

When you are struggling with your mental health, it makes earning money a lot more difficult. Not to mention that once you have earned that money, managing it becomes an issue. When you find yourself getting into debt, this can trigger mental health conditions or worsen existing ones, such as stress, anxiety and depression.

How Do People Manage to Get into Debt?

There are several common misconceptions when it comes to debt. Many people think that people find themselves in debt because they live a lifestyle that others deem excessive and spend far too much money in places where they don’t need to. This isn’t the case. The fact is that some of the most common triggers of debt are unemployment and redundancy. This can happen to anyone, regardless of their attitude towards money.

A number of different life changes that will affect all of us can result in you struggling to pay your household bills. These include losing your job, struggling with mental health issues and separating from your partner. Anything that means you have to change how you live and adjust financially can result in debt.

More pressure is added to personal debt because of the risks of seeking help. Many businesses, which are their own separate legal entities, will reach out to different recovery schemes upon finding themselves in debt. It is harder for individuals to do this because they worry about potentially finding themselves in more debt.

The Connection Between Mental Health and Debt

There are several reasons why struggling with your mental health can make it more of a challenge to stay on top of your finances.

Depression comes with various symptoms, but many people who suffer from depression struggle to be able to do much. This means they won’t have the energy or motivation to keep on top of their money or go out and make more money. Not to mention, depending on the kind of episode someone is having, they might go out into the world and make rash and unwise decisions concerning their spending. If your condition worsens to the point you need to take time off work or go to the hospital, you may see a reduction in income and struggle to keep up with your bills.

Other mental health problems make making informed decisions about money nearly impossible (a prime example is dementia). If you don’t have mental capacity, you will likely end up spending money you don’t have, hence why people who don’t have such capacity will often put somebody else in charge of their finances.

The Connection Between Debt and Mental Health

It was found in a recent study which the Royal College of Psychiatrists carried out that half of the adults living with debt also have some kind of mental health condition. The severity of said condition varied from a constant feeling of anxiety to low mood to depression.

When you are in debt, it can cause you to feel anxious about things. This is especially the case if you don’t feel you have any support from your friends or family. The debt you find yourself in can be a massive burden, made worse when you have to deal with it on your own.

Another side effect when worrying about debt is that it can affect your sleep. When you miss out on a good night’s sleep, you often find that not only does it play havoc with your mood and energy levels, but it will also impact the quality of work you put out and how good your relationships with others are. All these can build and build and further add to your debt problem.

It’s not like a small business when you can implement a recovery plan. With things that affect you personally, they come when you aren’t expecting them, and as such, your money will just take an unexpected downturn.

Questions to Ask If You Think You Have a Debt Problem

There are a few questions you can ask yourself if you think you might have a debt problem. These include but aren’t limited to:

  • Do I frequently feel anxious when I’m thinking about how I can manage my repayments?
  • Am I struggling to make, or do I routinely miss minimum payments towards utility bills, rent or credit cards?
  • Am I constantly ignoring letters from my creditors?
  • Do I avoid answering unknown numbers because of the worry it might be a creditor calling?
  • Am I unable to set aside any money for unplanned financial emergencies?

If you have answered yes to any of these questions, it might be worth reaching out and seeking help.

How Can You Get Help?

If you are struggling with a mental health illness and find that this contributes to feelings of depression and anxiety, you should reach out to your local GP or see a therapist. They will be able to discuss your feelings with you to help you understand them better and get a firm grasp on how you can control them.

If you would like help with your debt or money problems, you should consider contacting Simple Liquidation. Our team of experts is happy to help with any financial issues you are facing. If you have any further questions, then do not hesitate to get in touch.