Debt causing mental health ticking time bomb

80% of consumers getting debt help say their mental health has affected their finances, according to a survey carried out by Money Wellness,

Money Wellness surveyed their existing customers to find out how being in debt had affected their mental wellbeing and find out more about the link between mental health problems and money worries.

The results made it clear just how intertwined the two issues are, with 80% of those who come to Money Wellness for debt help saying their money struggles have been made worse by a mental health problem and 78% saying most of their stress is caused by financial worries.

The survey also highlighted that getting help with your money worries often results in significant improvements in mental health. Three out of four people (74%) said they felt like a weight had been lifted from their shoulders after seeking support with their debts.

The stress caused by money worries

• 78% said most of their stress is caused by money worries
• 83% said they feel stressed most of the time
• 76% said stress stopped them sleeping properly
• 74% said stress was having a negative impact on their mental health
• 55% said stress was having a negative impact on their physical health
• 22% said stress was causing relationship problems
• 22% said stress was affecting their performance at work
• 55% said stress affected all aspects of their life

The impact of a mental health problem on financial wellbeing

• 80% said a mental health problem had a knock-on effect on their finances
• 50% said a mental health problem means they feel anxious when they think about managing money
• 16% said a mental health problem means they find it extremely difficult to save money for a rainy day
• 9% said a mental health problem means they deliberately ignore calls from people to whom they owe money

Getting help with money worries

• 80% said speaking to us reduced their stress levels
• 74% said they feel a weight has been lifted off their shoulders
• 62% said they’re sleeping better since coming to us for help
• 62% said they feel less anxious after getting advice

Ian Somerset, Chief Executive of Money Wellness said “Soaring inflation and the rising cost of living is already pushing so many people deeper into debt. Worrying about not being able to provide for yourself and your family puts a major strain on most people’s mental health. It can leave them feeling stressed, anxious, and depressed, and can even have a detrimental impact on their physical wellbeing.”

“Debt occurs for any number of reasons, many of which are beyond a person’s control. In the current financial climate, no one is exempt. We no longer have a typical demographic. We’re seeing more and more families who have never had financial worries before, reaching out for help with their growing debts. And we’re only at the start of dealing with the impact that the past 12 months of rate rises will ultimately have. This will continue for years to come.”

“What’s most apparent, is the candour in which now customers are about how their debts have affected their mental health. This is something we didn’t see pre-COVID. For some customers, our advisers are the first person they have spoken to about their financial situation. And because we form a working partnership with them over a period of time, we not only help them with their money worries, but also help them access any additional support they need through partnerships with the likes of ReThink Mental Illness, Mind, or the Samaritans, as well as a number of other organisations.”

“From speaking to customers what is also clear, is that those who seek support with their debts at an earlier point, experience a far less negative impact on their mental wellbeing. It’s time to smash the stigma in reaching out for help with problem debt.”