Everything You Need To Know About Money Problems And Mental Health

Everything You Need To Know About Money Problems And Mental Health

This is a topic that me and my friends regularly discuss, we openly discuss our feelings and worries which helps however not everyone has that support. Mental Health issues are on the rise, especially in young people. The list of things that could affect your mental health is endless. Difficult life situations and excessive stress will always have a big impact on your wellbeing but one of the biggest causes of stress is money worries.

How money issues affect your mental health

It’s getting harder than ever for young people to manage their finances as the cost of living goes up and wages aren’t increasing. This increase in living is leading to so many people getting into debt that they can’t get rid of! Student loans and credit card debts at such a young age can bring such stress and strain on your mental health.


Its a little bit of a vicious cycle because having a mental health issue can cause you to be more likely to get into debt, which in turn will make your health issue worse. That’s why it’s important that you’re aware of the dangers of debt and money trouble. This post is everything you need to know about money problems and mental health.

How Does Debt Happen In The First Place?

There are a lot of misconceptions about how people end up in debt in the first place. A lot of people will tell you its because they’re not managing their money properly and their living outside of their means. Which of course can lead to debt. ”Don’t get caught out living a champagne lifestyle on a lemonade budget”.

The desirable Instagram lifestyle is hard to maintain a budget. Remember to look after what is important first. Bills, food, savings etc.

That might be true in some cases but the most common reason for debts is actually unemployment. In such a competitive job market, a lot more people are finding themselves out of work which quickly leads to debt.


How Do You Get Out Of Debt?

Once you’re in debt, it’s incredibly difficult to get out of it again. In fact, a lot of people end up getting further into debt rather than paying it off. That’s because you’ll be paying higher interest rates on those debts and often, people can only afford to cover the interest rather than the debts themselves. If you have a lot of different debts with different people, you could end up paying a lot of interest.

The easiest way to start clearing those debts is to combine them into one. Secured loan rates are a lot lower than credit cards, for example, so it’s better to take out a single loan to pay off your other debts and then focus on paying back that one loan. If your only paying one interest debt than it will be a lot easier to cover.


How money issues affect your mental health


How Does Your Mental Health Impact Your Finances?

There are quite a lot of different reasons that mental health has a big impact on your finances. People that have been diagnosed with series mental health issues like bipolar can make poor decisions with their finances.

It can cause you to act impulsively to make yourself feel better quickly. Like online shopping or spending money on drugs and alcohol to mask your mental health and worries.

If your struggling with depression, a lack of energy or motivation can cause issues as well. It’s harder for people to keep track of their money and organised when you lack motivation.

How Do Your Finances Impact Your Mental Health?

It goes the other way as well which is why you need to be so careful with your money. I know from experience how having money problems or being in debt can affect your mental health. Money worries are a big cause of suicide, particularly amongst men. Debt is a series cause of stress and anxiety which can develop into more serious issues if left unchecked. Stress can cause lack of sleep, insomnia which makes mental health issues worse also.


how money issues affect your mental health

There is a lot of stigma around debt, people don’t like to discuss it with anyone. Ashamed and worried that they may be judged for it and that they will be blamed for their money problems. They may be portrayed as lazy or undisciplined. These feelings are never good because it leads you to deal with the debt on your own. This can be incredibly isolating and impact your mental health even more. Don’t fall down the hole and seek help as soon as possible.

Mental Health

If you feel like your mental health has been greatly affected due to your finances and your struggling to cope, seek professional help. Charities and even your local bank can suggest options. Speak to friends and family about it. It’s very likely the older generations have dealt with debt also and can give you advice.

Mental health issues can lead to money worries which, in turn, can lead to more serious mental health issues. Before you know it, you’ll find yourself into a cycle that is very difficult to break.

 Whatever you do, don’t try to deal with it alone

Natalie Rose



Anxiety, dealing with it through everyday life


50 tips to help you thrive in 2019






  1. November 27, 2018 / 1:43 am

    I am in the boat of spending money to make myself feel better. Mental health affects your finances so much sometimes!

    • Natalie Rose
      November 27, 2018 / 7:52 pm

      Thank you for your comment. I totally agree. Spending money totally makes me feel better and its so important to spend on yourself and treat yourself now and then. xx

  2. December 3, 2018 / 3:32 pm

    Interesting post. I know what is like to depressed because of lack of money, after losing a job and not being able to support your family.

    • Natalie Rose
      December 3, 2018 / 9:51 pm

      Sorry to hear this. Hope you managed to turn that round. Always focus on the lesson and growth. xx

    • Natalie Rose
      January 19, 2019 / 8:01 pm

      Sorry to hear this and I hope this post helped some way. Wishing you all the positive vibes and happiness for 2019 💕

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