Debt can cause feelings of panic, worry and stress, which if not resolved could potentially lead to more serious mental health issues.
Alliance Scotland recently reported that those dealing with high levels of debt are 24% more likely to experience poor mental health as a result.
The term mental health covers a variety of different issues, from anxiety and panic attacks to even depression. For those already suffering with their mental health, their debt may have come about due to their inability to pay bills, because they have not been working.
According to the Guardian, 69% of people calling the National Debtline have had problems repaying loans, overdrafts and credit cards.
Increased expenses are also a common cause of debt issues, perhaps an interest rate rises on a mortgage or the price of a weekly travel fare suddenly goes up?
All of these can lead to more serious debt problems if no ‘rainy day’ money is at hand and in the long run could cause issues with mental health.
A poll by the Money and Mental Health policy institute also discovered that 38% of respondents claimed their mental health left them unable to remember what the creditors told them about the loan they were taking out.
Therefore, organisations such as the Citizens Advice Bureau are pushing lenders to encourage people to disclose whether they have been diagnosed with a mental illness before they allow them to take on credit.
Young adults, larger families, single parents and people living in rented accommodation are apparently the groups most likely to fall into debt, according to analysis from the Money Advice Service.
One in four 25-34 year olds are living with debt here in the UK, but this is potentially good news when it comes to removing any stigma around discussing mental health and debt, as Millennials are apparently more likely to openly discuss money issues and are actively campaigning to raise awareness of mental health problems.
If you are suffering with debt problems, then it’s imperative you seek advice quickly. It’s important that you do your research to dispel any myths around certain solutions – such as IVAs – and get your finances back on track.
If your mental health has been affected due to debt issues take some time to talk to close friends and family about your problem or seek out the confidential advice of a charity like Mind or a debt management service such as PayPlan.