How Can Spiralling Debt Affect Your Mental Health?

If you’re in debt, you’re not alone. As of March 2022, the average debt for a person in the UK was £33, 410, and that figure is still increasing. However, knowing that many people are in a similar financial situation does not lessen the burden, and you may feel that the stress of debt is now affecting your mental health.

You may also believe that there’s a stigma attached to being in debt due to the common assumption that people get into unmanageable debt because of poor budgeting or bad spending habits. However, it can be dramatic life changes, such as losing a job or splitting up with a partner, that force people to apply for credit. 

Additionally, with the increase in living costs, it has become more difficult for people to pay off their debt, which can then result in additional fees, interest & charges, making it seem even more impossible to get back on track and into a financially stable position. This, again, can put a strain on a person’s mental health.

How Does Debt Affect Mental Health?

Having uncontrolled debt can harm a person’s physical and mental health.

Half of all adults living with a debt problem suffer issues with their mental health. The stress of debt can cause a person to have a constant feeling of anxiety and/or depression, and it can also affect their sleep, which in turn can lead to low energy levels and irritability. Having a continued lack of sleep can weaken a person’s immune system and increase the risk of heart disease.

Symptoms of stress can be exacerbated if a person in debt has no support from family and friends. Without any support, they can feel isolated and unable to see a way out of their financial situation. In this case, many people may decide to ignore their debt, choosing denial as a way to deal with their emotional stress. 

Although denial seems like the easier option by not dealing with their finances, it will worsen the situation, and send them further into debt.

How Can Mental Health Affect Your Life?

The endless worrying about debt can affect sleeping patterns. If a person is having sleeping difficulties, such as insomnia, it will begin to impact their mood and energy levels. They’ll become more down and irritable, with little energy or enthusiasm to do anything. Additionally, severe sleep deprivation can cause heightened anxiety.

If insomnia persists, then it can eventually lead to a person being unable to work. The case could be the same for someone who is suffering from depression. So, once they’re out of work due to ill health, their debt will continue to spiral. 

Having poor mental health can affect how a person thinks and reacts. It can also put a strain on their relationships. 

Where Can I Find Help With My Debt?

Swift Debt Help can talk to you about various solutions to help get you out of debt. We have listed just some of the options that we will discuss below, and if an IVA is right for you, then we will be able to provide that solution for you:

Individual Voluntary Arrangement (IVA)

An Individual Voluntary Arrangement (IVA) is a legal agreement with your creditors for you to pay back some or all of your debt. The IVA is arranged on your behalf by a qualified person, called your IP (Insolvency Practitioner). Your IP will arrange a payment plan for you to repay your creditors over a period of time (typically 5 years) through monthly payments, and, once approved, your creditors will have to stick to this agreement.

Debt Relief Order (DRO)

A Debt Relief Order (DRO) allows your debt, and any interest owed, to be put on hold for twelve months. After this time, if you continue to meet the eligibility criteria, then any included debt will be written off. A DRO is an alternative to bankruptcy if you have limited assets and affordability. 

Debt Management Plan (DMP)

A Debt Management Plan (DMP) is an informal arrangement between you and your creditors where you use a third-party company to set up the plan and distribute money to them.

Advantages Of Finding Help

There are many advantages to finding a solution to help get you out of debt.

With less of a financial burden, you should find it easier to sleep, which will improve your cognitive behaviour, such as your memory and concentration.

If you’re struggling with debt, then we may be able to help. Please contact us, so we can advise you on the various debt solutions available, then we can help you find one that’s right for you.