If you’re struggling with debt or the increasing cost-of-living and finding it’s taking its toll on your mental health, you’re not alone. Find out the steps you can take to help manage your money and your mind
Our finances can have a serious impact on our mental health. Whether you’re dealing with debt or needing to cut back on your spending due to the cost-of-living crisis, it’s understandable that money might be making you anxious. Unfortunately, it can also be a vicious cycle: financial problems cause stress and anxiety, and those feelings make it harder to take steps that could improve your circumstances, leading to more financial difficulties.
If that scenario feels familiar, you’re not alone. A recent survey found that over 1.5 million people in the UK are currently experiencing problem debt and mental health issues. That’s why we’ve chosen to mark World Mental Health Debt by focusing on the steps you can take to manage your money and your mind. World Mental Health Day is recognised every year on 10th October and aims to raise awareness of mental health issues around the world.
So, what can you do to protect your mental health while also dealing with debt?
Don’t keep it to yourself
Despite money worries being widespread, there’s still a lingering stigma surrounding debt that can lead people to struggle in silence. Not only can keeping quiet exacerbate any existing mental health concerns, but it can also result in social isolation. Talking openly about your financial anxiety might not solve the problem but it could improve your mental health. Speak with your friends or family or seek help from an unbiased professional such as a counsellor, your GP, or a mental health charity like Mind.
Set a manageable budget
While rising energy and food prices are forcing many of us to cut back on our spending, living with a punishing budget can negatively impact your mental health. If you’re finding that you can’t afford to heat your home or eat properly, it’s important to seek help as soon as possible. Support is available, whether it’s visiting a local foodbank, claiming any eligible benefits, or seeking help direct from the energy companies.
If you’ve not reached a crisis point but would still like to cut your costs, implementing a budget that allows for occasional treats can help you manage your money and look after your mental health. Try to leave room in your budget for the occasional takeaway or trip to the cinema, whatever it is that can help to boost your mood on the most difficult days.
Apply for Breathing Space
When you’re feeling anxious about falling behind with your debt repayments, creditors can sometimes make the situation worse. Aggressive communications, insensitive responses, and threats of further action could all increase your stress levels. Breathing Space is a government-baked scheme that provides respite for up to 60 days. During this period, you’ll still have to pay your debts but won’t face any further action or extra charges so you can focus on finding debt management advice.
If you’re already living with a mental illness and require crisis treatment, you may be eligible for Mental Health Breathing Space. Unlike the standard scheme, this type of breathing space is only available to those receiving mental health crisis treatment. It will last for the duration of your treatment – plus 30 days – and you can also appoint someone to act on your behalf.
Seek expert debt advice
Contact your creditors as soon as you start struggling with your repayments. They may be able to propose a payment plan that is more manageable and takes the weight off your mind. However, if you need additional support or a more formal debt management solution, consider seeking professional debt advice. A knowledgeable debt advisor is trained to understand your concerns; they can liaise with your creditors on your behalf and tailor a solution that works for you and your circumstances. They’ll explain all the options available to you, from debt management plans and debt relief orders to Individual Voluntary Arrangements (IVAs).
Looking for advice on debt solutions? Call us for a confidential chat today on 0161 826 0585 or send us a message here.
