Sadly, many people believe that being in debt stems from poor life choices, such as drugs, alcohol, trying to have a lavish lifestyle, or generally having bad spending habits and poor perception of money.
This is very rarely the case.
Unemployment and redundancy are the most common triggers when it comes to debt problems. This can happen to anyone, no matter what their attitude towards money is.
Life stressors such as losing your job, separating from a partner, dealing with mental and/or physical health problems can all contribute to financial problems. Having to adjust to such financial change can be very difficult and can in turn take its toll on your mental health.
Mental health and financial issues often come hand in hand as part of a vicious circle.
Struggling with your mental health can often make managing your finances more difficult, for example; you may overspend in an attempt to cheer yourself up or take your mind off of other things, or you may lack the energy and motivation to organise your funds and pay bills on time.
On the other hand, worrying about finances and struggling to make ends meet can have a negative impact on your mental health; causing higher levels of anxiety and depression as well as issues sleeping.
How Financial Concerns Can Make You Feel:
- May feel like your situation is out of your control and that not you, or anyone else can do anything to fix it.
- May feel hopeless, especially if the debt continues to increase.
- Embarrassed to talk about your financial situation and seek help.
- Feelings of guilt – feeling as though the problem is your fault even if it was caused by poor mental / physical health.
- Depressed and/or anxious.
Financial issues are on the rise as a result of the cost of living crisis.
There has been a 17% increase in the use of credit cards within the last 12-months.
People are having to put their household bills on a credit card due to large increases and the lack of support to coincide with these changes, for example, wages and/or benefits are not increasing enough to match the cost of living. This is putting people in very vulnerable positions.
There are people in full time jobs who are struggling to pay their bills.
There are more and more people being forced to use food banks in order to put food on the table for their family.
People are not able to heat their homes – they are having to choose between food and warmth.
People are having to dip into life savings, or stop putting money aside for things such as buying a house or saving for children.
We are taking huge steps backwards.