According to a survey by the loan comparison group FairMoney, financial problems are the main cause of mental health issues.
The research conducted suggests people are taking out loans to cover basic household spending with 5 million British consumers having taken out a loan to cover home repairs and improvements in the last year.
“As the economy slows, there are over three million adults living in the UK with financial difficulties and mental health issues. Unfortunately, this is continuing to grow. Lending practices contribute to wellbeing and mental health issues, and lenders need to be accountable for this. With such pressure, it’s not surprising that consumers turn to payday lenders and credit cards to battle the financial burden.
“Fairer finance needs to available for all to help with these social ills. Payday loan providers have their place in society for cash-strapped Brits but this must be done in an ethical manner. Most people have been abandoned by poor lending practices that stem from the financial crash of 2008. We’re more than a decade on – things need to have changed. The sector must be eradicated to eliminate such ills.” – Executive chairman and founder of FairMoney, Dr Roger Gewolb.
Financial stress and its impact on mental health has seen a rise in absenteeism, poor work performance and lowered concentration at work.
When financial difficulties and mental health problems are combined, you create a spiralling vicious circle where one compounds the other.
When you have poor mental health, organising and managing financial issues becomes trickier. This, in turn, creates a sense of fear, anxiety and worry, once again affecting your overall mental health.
Unfortunately, financial problems can and do affect mental health. When people have debt which is causing them to worry, they don’t focus on work; they might be present but they are not productive. Poor work performance has a knock-on effect on promotions and bonuses which further reduces earnings progression. Chronic financial strain could lead to serious psychiatric and cognitive problems or depression.
Accepting you need support is by far the first hurdle to getting help, with many organisations trained in finance available to guide you. Burying your head in the sand and sleepless nights will only add to the mental pain you are experiencing.
It may seem a big step asking for help but it is by far the best way to prevent any further problems.