Debt can affect far more than your bank balance. Worrying about missed payments, creditor letters or essential bills can make it difficult to sleep, concentrate and enjoy everyday life.
Money problems can follow a change in income, illness, separation or rising household costs. Feeling stressed does not mean you have failed, and you are not alone.
The FCA’s findings from its Financial Lives 2024 survey, published in 2025, found that one in four UK adults had low financial resilience. The FCA also reported that one in ten had no cash savings, while another 21% had less than £1,000 available for an emergency.
What Is Emotional Financial Distress?
Emotional financial distress is the mental strain caused by money worries. It may begin before debts become serious and continue while you are trying to resolve them.
Common signs include:
- Constantly thinking about money
- Feeling anxious when the phone rings or post arrives
- Avoiding bank statements and creditor messages
- Difficulty sleeping or concentrating
- Feeling ashamed or hopeless
Debt stress can create a cycle. Anxiety may make it harder to open letters, check your budget or ask for help, allowing the problem to grow.
Our page on debt and mental health explains the relationship between financial problems and emotional wellbeing in more detail.
How to Stop Stressing Over Debt?
You may not be able to remove every worry immediately, but making a clear plan can help you feel more in control.
Start by writing down:
- Each debt and its current balance
- Your monthly repayments
- Any missed payments or arrears
- Your regular income
- Your essential household spending
- Any deadlines included in creditor letters
You do not need to solve everything in one day. Start with the most urgent issue and work through the rest gradually.
Try not to ignore letters or calls. Opening a letter does not commit you to making a payment you cannot afford. It helps you understand what stage the account has reached and whether action is needed.
You may also find it helpful to choose one regular time each week to deal with financial tasks. This can stop money worries from taking over every day.
What to Do If I’m Struggling for Money?
If there is not enough money to cover everything, prioritise bills according to the consequences of not paying them.
Priority commitments can include:
- Rent or mortgage payments
- Council Tax
- Gas and electricity
- Court fines
- Child maintenance
- Essential food, travel and medication
Credit cards, personal loans and catalogues still need attention, but they do not usually carry the same immediate risks as falling behind with housing or essential bills.
Create a realistic budget using recent bank statements rather than relying on estimates. Our budgeting basics guide can help you list your income, household costs and debt repayments.
Contact creditors as soon as you know a payment will be missed. Explain that you are experiencing financial difficulty and ask what support may be available.
Depending on the creditor and your circumstances, they may consider a temporary arrangement or give you time to seek debt advice. However, they are not required to agree to every request.
How to Get Out of Debt When You Are Broke?
When you have little or no spare income, simply being told to pay more each month is not realistic. Your first priority should be protecting essential living costs and avoiding further unaffordable borrowing.
Practical steps include:
- Stop using credit for non-essential spending
- Cancel subscriptions you no longer need
- Check whether you are receiving all available benefits
- Ask creditors to consider affordable payments
- Avoid using one debt to repay another
- Seek advice before taking out new credit
If you cannot maintain your normal repayments, a debt solution may need to be considered. You can compare the main options on our debt solutions page.
Depending on your circumstances, these could include a Debt Management Plan, Individual Voluntary Arrangement, Debt Relief Order or bankruptcy. Each option has different eligibility rules, costs and consequences.
Our article on how to write off debt explains when qualifying debts may be written off through a recognised debt solution.
Simply stopping your payments does not write debt off. It could result in further collection activity, damage to your credit history or legal action.
Should I Tell Creditors That Debt Is Affecting My Mental Health?
Where you feel comfortable doing so, telling creditors about your mental health may help them understand why you are struggling to communicate or maintain payments.
You could ask for:
- Contact in writing instead of by telephone
- More time to respond to letters
- A temporary pause while you seek advice
- A trusted person to help with communication
- Repayments based on what you can afford
Keep a record of what is agreed, including the name of the person you spoke to and the date of the conversation.
Do not agree to a payment that would leave you unable to cover food, housing, energy or other essential costs.
How Can I Look After My Wellbeing?
Practical action and emotional support can work together. Dealing with your debts may take time, so it is important to look after yourself throughout the process.
Try to:
- Speak to someone you trust
- Take breaks from checking accounts and messages
- Maintain regular meals and sleep where possible
- Avoid making major financial decisions while panicking
- Speak to your GP or a mental health professional if stress is affecting daily life
Seeking emotional support does not replace dealing with debt, but it may make the practical steps feel easier.
What Should I Do Now?
Debt stress often becomes worse when everything feels uncertain. Writing down what you owe, protecting your priority bills and speaking to creditors can help you regain a sense of control.
If your debts are no longer affordable, My Debt Plan can review your circumstances and explain the options that may be available. Our advice on your options is free, although some debt solutions may involve fees and affect your credit rating.
Get debt help online or speak to our team confidentially on 0161 464 0870.
