Mental Health Awareness Week: We need to talk about debt

It has been a week of detailed, candid and crucial conversation about mental health. One that has brought to the fore the huge, deeply personal battles faced every day by millions of Britons.

And while the triggers, symptoms and underlying causes of these battles seem to have little to do with settling the weekly food shop, or sorting out a direct debit, or doing a spot of online browsing, the link between mental health and the state of our personal finances is irrefutable, widespread and often fundamental.

This isn’t simply about splashing out on a new trinket to banish the Monday blues, though that too has its place in the discussion playing out across the nation’s offices, media outlets, schools, sports stadia and even palaces this week (and hopefully every week).

This is about the exhausting, often terrifying relationship between financial and emotional crisis. The acute and the chronic, the subconscious and the overwhelming, the seemingly trivial and the crushingly large.

Each half of this toxic whole exasperates the other. Bailiffs knocking on your door won’t help alleviate inner fears and those facing down a mental health crisis have resorted to freezing their credit cards to stop themselves descending into debt while trying to work through it.

Emotional cost

We know that, as things stand, more than three-fifths of UK adults are in debt, typically dealing with mortgages, credit cards and student loans.

Of those, more than a quarter feel their debt levels are out of control. They have no clear plan of how they can pay it off.

New research from comparison website KnowYourMoney suggests a quarter of adults regularly lose sleep about it and thousands feel they can’t talk to the people around them about their financial difficulties.

Other figures suggest that nearly half of people in problem debt also have a mental health problem and 86 per cent say that their financial situation had made their mental health problems worse.

In fact, with more than 3 million people now dealing with both mental health and financial problems, 100,000 people with problem debt will attempt suicide every year, the Money and Mental Health Policy Institute warns.

Talking therapy

“Campaigns like Mental Health Awareness Week play an important role in combating the stigma that prevents people from talking openly about mental health issues,” says Jane Goodland, corporate affairs director at Quilter.

“Money matters remain off-limits in conversation for many people who often do not have the kind of support networks around them to deal with these challenges. Instead, when faced with problems linked to money, like debt worries or other financial problems, we tend to try to deal with it alone rather than seeking help and advice.”

Relax the stiff upper lip

But the relationship between our money, personal lives and mental health is far more complex than simply preferring to keep our financial affairs private.

“Money problems have always been more of an emotional issue than a numerical one because the way we handle money is intimately tied up with our self-esteem and self-image, as well as feelings of pride, guilt, shame and anxiety,” says psychologist Donna Dawson.

“Keeping negative emotions inside ourselves will eventually take a toll on our physical and mental health. Most people realise this, and the adage “Better out than in”, has never been truer: talking about money problems, especially long-term ones, can offer clarity, shared ideas and empathy, reveal more options, and lead to better, more positive outcomes.”

Everything is fixable

As Mental Health Awareness Week kicked off, the Treasury Select Committee announced a raft of hard-hitting measures designed to, among other things, ensure people with mental health problems get a fair deal from financial services.

They include demands that the government should act to make debt collection letters more supportive and less intimidating and that banks should introduce optional spending controls to help vulnerable consumers better manage their money and protect access to cash for this group by preserving bank branches and free-to-use ATMs.

The report also calls for the Financial Conduct Authority to do more to address illegal discrimination by travel insurance providers against people with mental health problems.

Moving forward

“Whatever the scale of your financial wherewithal, it is important to build a proper financial plan so that you’re in control of your finances,” adds Goodland.

“That starts with understanding your outgoings and expenditures and trying to make sure you always have enough set aside to cover life’s essential costs for at least a few months if you were to lose your main source of household income or experience some other financial shock, like a costly home repair bill. Unfortunately, many people don’t have that financial buffer in place, making them vulnerable if their finances take a turn for the worse. This can easily lead to strain on someone’s mental health, especially if they’re under pressure to support themselves and a family.”

If you’re worried about your finances and how it could impact your wellbeing and mental health, there are plenty of sources of confidential and impartial advice and support. Government-backed services such as the Money Advice Service and the Pensions Advisory Service can help you get on top of basic financial matters and are free to use. And charities, including StepChange or Citizens Advice, can provide support for those struggling with debt.