How Mental Health and Money Problems Can Create a Vicious Cycle

Mental health and money problems are often linked. When you’re dealing with debt, it can lead to stress, anxiety, and even depression. 

At the same time, mental health problems can make managing money a real challenge. This can create a cycle that feels hard to escape.

Mental Health and Money Problems: How Big Is the Problem?

A recent Citizens Advice webinar highlighted how closely mental health and debt are connected:

• People with mental health problems are three and a half times more likely to be in problem debt.
• Half of all adults with debt problems also have mental health issues.
• On average, people with mental health problems earn nearly £2,400 less per year.
• Essential costs can be £1,500 higher for those with mental health challenges, often due to difficulties finding good deals or managing bills.

Why Does This Happen?

Mental health issues can make everyday tasks much harder. You might:

• Struggle to concentrate on managing bills and budgeting.
• Avoid asking for help because it feels too difficult.
• Feel overwhelmed by letters, emails, or phone calls about debts.
• Lack of motivation to handle financial tasks, like checking your bank account.
• Spend impulsively, as reduced impulse control is common during low mental health periods.

The Impact of Money Problems on Mental Health

The link goes both ways. Financial stress can harm your mental health, making you feel:

• Anxious about unpaid bills or debt collectors.
• Guilty or ashamed of your financial situation.
• Hopeless if you can’t see a way out of your debts.

Practical Steps to Break the Cycle

1. Start Small: Focus on one easy task each day, like opening a letter or setting up a payment reminder.
2. Reach Out for Help: Charities like Citizens Advice offer free support and guidance.
3. Use IE Hub’s Free Budgeting Tool: It can help you organise your money, see where it’s going, and share your financial information with creditors easily.
4. Automate Your Bills: Setting up direct debits can reduce the stress of missed payments.
5. Be Gentle with Yourself: Many people find managing money hard, especially when mental health is low. You are not alone.

How IE Hub Can Support You

IE Hub offers a free, simple budgeting tool to help you take control of your finances. You can securely share your budget with companies you owe money to, making it easier to set up payment plans or get support without the stress of phone calls or meetings.

If you’re feeling ready, visit IE Hub to get started. We’re here to help you find a way forward, step by step.

Final Thought: Mental Health and Money Problems

It might feel daunting, but even a small step can make a big difference. Whether it’s setting a budget, speaking to a support service, or just opening a bill, every step forward counts. You can do this!