If you’re struggling to manage your debt and your mental health, we’re here to help. Read on for our guide to finding the right support for you
Debt and mental health are closely linked. In fact, they can cause something of a vicious cycle that can feel tough to escape. When your mental health is suffering, it becomes harder to manage your money and make payments on time, but falling into debt can also cause stress, anxiety, and similar mental health problems. The Royal College of Psychiatrists conducted a study that found half of all adults with a debt problem also live with mental ill health.
Certain mental health conditions can also impact your finances; manic episodes could lead to impulse spending sprees, low mood could mean missing payments, and taking time off work to recover could affect the amount of income you have coming in.
So, what can you do if you find yourself caught in this cycle? Happily, it’s not all bad news; there are several places you can turn to for support with both your mental health and your debt.
Acknowledge that you’re not alone
First things first, there’s no reason to feel ashamed or embarrassed about your debt. It’s important to remember that anyone can find themselves struggling with their finances, even if they’re careful with their spending and work full time.
A sudden change in circumstances can quickly turn your life upside down. A survey by Shelter found that 50% of private renters would struggle to pay rent for more than a month if they were to lose their job unexpectedly.
1 in 4 people in the UK experience a mental health issue at least once a year, so if you’re going through a tough time, know that you’re not alone and you never have to suffer in silence.
Speak to friends and family
Depending on your situation, you might be lucky enough to have a strong support system in your friends and family. While sharing your situation with the people closest to you isn’t always easy, letting your loved ones know what’s going on can be the first step in improving both your mental health and your debt.
Consider confiding in a friend or family member that you trust and know won’t judge you. Not only can they provide a sounding board to help you work through the challenges you’re facing, but they could also support you practically, helping you get in touch with professional debt advisors or find helpful resources online.
Visit your GP
Your local GP can offer support with your mental health and the symptoms associated with it like insomnia. While this won’t directly impact your debt, it could help you access services and tools that will improve your mood, so you feel more able to tackle your financial situation. Everyone is different, but helpful options might include counselling, medication, support groups, and more.
Your doctor could also help you complete a Debt and Mental Health Evidence Form (DMHEF). This can be used to show your creditors that you’re dealing with a mental health problem and, in most cases, have appointed someone to act on your behalf. Once they’ve received your DMHEF, your creditors may adjust how they communicate with you and the way they choose to manage the collection process considering your condition.
Approach your creditors
No matter whether you have a DMHEF or not, you may also be able to improve your situation by going direct to your creditors. You could give them a call to explain your situation or check their debt and mental health policies online first, so you know where they stand.
There are no guarantees, but once they understand more about the impact debt is having on your mental health, your creditors may agree to temporarily pause payments, stop charging interest for a set period, or renegotiate the terms of your agreement and the amount you need to pay each month.
Find information online
If you’re not ready to reach out to an organisation on the phone or in person, you could head online to find support services. Guides like this one can share helpful advice, signpost services, explain the debt management options available, and detail how different schemes like Breathing Space work. Charities like Mind, StepChange, National Debtline, and Citizens Advice all offer advice online while the Government’s resource, Money Helper, can also help you find online, telephone, and face-to-face support in your local area.
Seek expert debt advice
It’s never too late to seek professional debt advice. Working with the experts can make all the difference in starting to take control of your debts. It could also help you get access to services like Breathing Space. Our team will listen to your circumstances without judgement, explain the different debt management solutions available, and help you decide which one might work best for you. It’s not a one-size-fits-all; we look at your individual situation, including your mental health, to find solutions that will be right for you in the short and long term.
Mental Health Breathing Space
Those suffering with a mental health crisis and undergoing treatment may qualify for a Mental Health Breathing Space. This differs from the standard scheme as it only applies to those in a mental health crisis and you’ll need a carer, social worker, mental health nurse or mental health advocate to help you apply. If accepted, your debt and interest payments will be paused, and you won’t receive any communication from your creditors during your crisis and for up to 30 days after your care ends. There’s no limit to the number of times you can enter a Mental Health Breathing Space in any given year.
Looking for support with your debt? Our team of experts is here to help. Give us a call on 0161 8260 585 or send a message here