Problem debt and its impact on mental health.

Recent findings from an NHS survey has highlighted the link between mental health and problem debt.

Now, new research by the Money and Mental Health Policy Institute reveals more.

The research is based on an analysis of new national data from the Adult Psychiatric Morbidity Survey.

Problem debt has been defined as falling seriously behind on payments for bills or credit agreements.  Or having been disconnected by a utilities provider in the past year.

Problem debt impacts mental health.

The links between problem debt and mental health problems are very real.   Problem debt can cause our mental health to deteriorate. And people with existing mental health conditions can see their chances of being in debt dramatically increase.

It is no surprise that people experience ‘financial fear.’

Being in debt can be daunting and for some overwhelming.  It can affect not just our mental health but our physical health too.  Sleepless nights and stress-related problems are all too common.

More protection and help is needed.

The charity is calling on the government to use its upcoming Consumer White Paper.

They want to ensure people with mental health problems get a fairer deal from essential services like banks, energy or broadband providers. They are also calling for more protection from aggressive debt collection practices.

What the survey figures show.

1.5 million people in England are currently struggling with both problem debt and mental health problems at the same time.

People with mental health problems are 3.5 times more likely to be in problem debt than those without mental health problems.

Nearly half (46%) of all people in problem debt are also experiencing a mental health problem.

The research also reveals, for the first time, the extent to which experiencing some mental health conditions, in particular, can dramatically increase the chances of facing financial difficulties.

People with existing mental health problems at increased risk of financial difficulties.

The survey also shows that people with Obsessive Compulsive Disorder (OCD) are almost six times more likely to be in problem debt than people without a mental health problem.

This is, in part, due to common symptoms such as unreliable memory and difficulty in processing information. All of which makes it harder to manage money.

Nearly a third of people (29%) with OCD in England have problem debt.  Compared to just 5% for people who do not have a mental health problem.

Similarly, people with bipolar disorder or depression are around five times more likely to be experiencing serious financial difficulty than people without mental health problems.

One in 4 people affected by these conditions is in problem debt. Compared to one in 20 people who do not have mental health problems.

This reflects the impact of common symptoms of bipolar disorder such as impulsiveness, especially during manic episodes. And symptoms of depression such as low moods and poor concentration, all of which can affect people’s ability to manage their finances.

Charity calling for action from the government.

Money and Mental Health is calling for wide-ranging action from the government.

They are also calling for the NHS, banks, energy providers and regulators to reduce the psychological impact of problem debt.  And the chances of someone with mental health problems falling into financial difficulty.

“So, the two issues feed off each other, creating a vicious cycle which can destroy lives”

Helen Undy, Chief Executive of Money and Mental Health, said:

“When you’re struggling with your mental health it can be much harder to stay in work or manage your spending. While being in debt can cause huge stress and anxiety. So, the two issues feed off each other, creating a vicious cycle which can destroy lives. Yet despite how connected these problems are, financial services rarely think about our mental health. And mental health services rarely consider what’s happening with our money.”

“The government has an opportunity to use its upcoming Consumer White Paper to introduce minimum standards. That people with mental health problems can expect across essential services like energy and banking, to ensure that they get a fair deal. That should include help to avoid problem debt, and better protection from aggressive debt collection practices when it does happen.”

“And ensuring that money advice is routinely offered to people using mental health services would increase recovery rates. [As] well as improving the financial wellbeing of the 1.5 million people currently dealing with this terrifying combination of problems.”

If you are struggling with debt problems, Ramsey Lomax can help. contact Ramsey Lomax.

Ramsey Lomax.

“over 12 years of dedicated advice.”

“People struggling with debt should seek help as early as possible.”

This is good advice from a leading debt charity.  Taking the first step is always difficult but it is vital.  There is help out there and solutions that can help, but you need to take the first step towards getting good debt advice.  We have listened to the stories of 1000s of people and are constantly striving to help them.  It is our mission to explore all their options and find a solution to help them become debt free. And what’s more, we have helped 1000s to achieve their goals since 2007, over 12 years of dedicated advice.

Find out how Ramsey Lomax can help you and if you qualify to write off up to 80% of your debts.