Money problems and mental wellbeing

Poor mental health can mean feeling sad or stressed, or finding it hard to cope with daily life.

You might feel like this for many reasons – bereavement, loneliness, relationship issues, money, health or work problems. But there might also be no clear reason for it. It can happen to anyone, at any time and for any length of time.

Feeling depressed, stressed, anxious or experiencing mania can make it difficult to manage money. For example:

• You might find it harder to make budgeting and spending decisions.

• To make yourself feel better, you might spend money you don't have on things for other people or that you don't need and then regret it later.

• You might feel anxious or stressed about talking on the phone, going to the bank or opening your bills.

• The symptoms of a mental illness might cause you to behave impulsively like spending a lot of money all in one go. 

Any of these problems can be made worse if your income goes down, for example, if you have to stop work or take time off work because you’re unwell.

If you need money but aren’t able to borrow it, find out more in our guide What to do if you’re refused credit or a loan.

It’s aways better to face your money worries than ignore them. 

Here are 10 ways to help you get your finances back on track: 

1. Create a budget to help you manage your money – try our free and easy-to-use Budget planner 
2. Keep your wallet out of easy reach – or avoid linking your phone or Smartwatch to your bank account, to make impulse spending more difficult. 
3. Remove shopping apps from your phone – so you’re not as tempted to spend. 
4. Use free online tools (such as BlockSiteOpens in a new window) – to block shopping sites for as long as you want.
5. Consider getting rid of your credit cards – if you’re finding them too difficult to manage. 
6. Ask your creditor for help – there are various ways they can do this. They might agree to temporarily freeze your card when you feel like you’re spending is getting out of control, change the amount of money you can take out of cash machines each day or switch off cash withdrawals.
7. Tell potential lenders that you don’t want them to lend to you – you can do this by adding a ‘note’ to your credit file. Reference agencies  ExperianOpens in a new window and TransUnionOpens in a new window offer this service.
8. Remove the auto-filled information from your browser for online shopping sites – this will help avoid impulse spending. Google ‘how to clear your cookies’ to find out how to do this.
9. Consider putting money aside – for times when you might not be able to focus on saving. 
10. Download the free Mental Health and Money ToolkitOpens in a new window to help you understand, manage and improve your mental and financial health. 

You might be in a situation where your debt has left you without enough money to pay for the basics such as food, gas and electricity, Council Tax, rent or mortgage. It might also mean that you can’t pay back loans, credit card bills or overdrafts.  

There are many places where you can get free, independent and confidential help and information. A debt adviser will talk you through your money worries and find ways to manage your debts. They can suggest solutions even if you don’t think you have spare money to deal with your debts.  

To avoid your situation getting worse, here are three things you can do: 

• Ask a trusted person to look after your post, such as a relative, friend or a support worker. 
• Don’t ignore the companies and people you owe money to, or it’s likely they’ll continue to chase you rather than giving you time to sort things out. (See our ‘Dealing with creditors’ section below) 
• If you’ve bought something and then decide you can’t afford it or don’t want it, cancel or return items and get your money back. Find out more about your consumer rights.

A creditor is any organisation you owe money to, such as your bank, mortgage lender, credit card provider, landlord, local authority, or energy, water, phone or broadband provider.

Many people are worried about talking to their creditors about their poor mental health. But it’s a good idea to tell them. This is because once they know, they’ll be better able to offer support.

Ask if they have a specialist team or what else they can do to help customers in your situation. Most companies will let you contact them in the way that best suits you – webchat, email, telephone or in person.

MoneySavingExpert has a downloadable booklet that takes you through the pros and cons of telling your creditorsOpens in a new window

Here are some ways your creditor might be able to help: 

• Your bank can add a note about your mental health to their files. This might help alert them to signs of any unusual spending you might carry out when you’re feeling unwell. However, it might slow down any application you make to your lender for credit.

• You can add information about any mental health condition to your credit files in a ‘notice of correctionOpens in a new window’ This can be added or removed whenever you want.

• You can ask your creditor to send a Debt and Mental Health Evidence Form to your GP or other health professional, so that they can see how your mental health affects the way you manage your money. (Not all creditors will want to see written evidence of a mental health problem, but if they do, this form is useful).

• Breathing space (also called the Debt Respite Scheme) gives someone with problem debt the right to legal protection from their creditors. Find out more in the following information.

If you know you’re going to have problems with repaying what you owe to banks, loan companies, credit card providers or other financial services firms, you can ask a debt adviser to apply for you to join the Debt Respite Scheme (Breathing Space).

There are two types of Breathing Space:

This is available to anyone with problem debtOpens in a new window By law, it stops a creditor from taking action to get you to repay your debt for up to 60 days. Also, most interest and charges will be frozen. 

This is only available to someone who is receiving ‘mental health crisis treatmentOpens in a new window’, which an Approved Mental Health Professional must make an application for on your behalf.

This term has a specific meaning and doesn’t cover everyone who is having therapy or taking medication for their mental health condition.

However, this breathing space has stronger protections for people in debt. It lasts as long as the person’s mental health crisis treatment does, plus a further 30 days, no matter how long the treatment lasts.

If you feel you’ve been mistreated by your bank, building society or other lender after telling them about your poor mental health, give them an opportunity to put things right first. 

The simplest way to do this is to contact a supervisor or a manager. If that doesn’t sort things out, you can make a complaint. 

Poor mental health can make it very hard to start a formal complaint, so you could ask a friend, relative, or support worker to help you instead. 

If you can’t resolve the issue with the lender and feel you need to take your complaint further, you can contact the Financial Ombudsman ServiceOpens in a new window

Citizens Advice has more information about how to make a complaintOpens in a new window

If you experience a mental health crisis, are a risk to your own safety or need intensive support, a doctor may either recommend you be admitted to a hospital or decide you would benefit from being treated there. 

If you’re getting benefits and are in hospital for a while (usually longer than 28 days), some of them might stop until you return home. So you’ll need to let the DWP, HMRC or your local council know about your hospital stay. 

If someone gets Carer’s Allowance for you, their benefit will stop at the same time.  

If you have a partner or spouse living with you who’s getting income-related benefits, such as Universal Credit, their benefits might change as well. 

Mental Health & Money Advice offers guidance on what will happen to your benefitsOpens in a new window when you go into hospital. 

Turn2Us explains more about the benefits you can get in hospitalOpens in a new window and the effects on carers, partners and spouses. 

You’ll need to continue paying your bills while you’re in hospital. If you’re able to, think about setting up a Direct Debit so this will be done automatically. 

If managing your money when you’re going to be in hospital is likely to be a concern for you, you might be able to get someone to do this for you (see below). 

Mental Health & Money Advice has for more information about the help you can get, and what you need to do, if you’re in hospitalOpens in a new window

You might want to agree with a close friend or family member that you’ll let them know when you’re feeling unwell.  You could make an action plan together. For example, it’s worth looking into arranging a third-party mandate so they can look after your credit card or bill payments when you feel unwell or help you make a GP appointment. You might want to consider setting up a Lasting Power of Attorney if your mental health means you might lose the capacity to manage your own money.   

If you’re claiming benefits, and either have mental health problems, lack capacity or are ‘severely disabled’,  setting up an appointeeshipOpens in a new window would mean someone else can manage your benefits for you. 

If you have a mental health condition, you might qualify for help with benefits. 

If you’re over 16 and under State Pension age, and have a mental health condition, you might be entitled to Personal Independence Payment (PIP)Opens in a new window (in Scotland this is called the [Adult Disability Payment] (ADP)Opens in a new window)  if you need help moving around, planning journeys or with everyday tasks. Even if you have a regular income, savings, or both, you could still qualify for PIP (or ADP). 

If you’re over State Pension age, you might be able to claim Attendance AllowanceOpens in a new window

If you can’t work for an extended length of time because of your illness and you’re not entitled to Statutory Sick Pay (or it has run out), you might be able to claim Universal Credit or Employment and Support Allowance (ESA) to help replace lost income. But if you’re claiming a sickness or disability benefit, you’ll usually need a medical assessment as part of the claim process. 

Mental Health & Money Advice has a complete list of benefitsOpens in a new window you might be entitled to, and explains how to apply for them if you have a mental health condition or care for someone who does. 

If you feel very low or are experiencing suicidal thoughts, you can call Samaritans free on 116 123.

The Samaritans provide non-judgemental listening services 24 hours a day, seven days a week, 365 days a yearOpens in a new window Whatever you’re going through, a Samaritan will face it with you. If you feel you are in danger of taking your own life, call the emergency services on 999.

Shout also offer a 24/7 text-based service – simply text ‘Shout’ to 85258Opens in a new window

Some people experience a mental health crisis as a break with reality. They might see or hear things that aren’t there, or they might believe things that can’t be true. This can sometimes mean they put themselves in danger. 

If you’re worried that someone you know is at risk of this or is in danger of taking their own life, call 999 immediately. 

You can find other support that suits your needs, such as Hub for Hope, CALM, Childline and more help at the NHS websiteOpens in a new window