Money problems can have a toxic effect on your emotional health.

When you are struggling financially, negative feelings about your self-worth are often created or intensified which lead to behaviour that only makes the situation worse. It’s a vicious circle where your mood plunges in tandem with the growth of your overdraft.

The average UK household now has an average debt of over £15,000 – excluding mortgages. During uncertain times, many of us are increasingly feeling the financial pinch whether planning for the future or paying for a holiday. For the harder hit, putting food on the table or paying the overdue rent are more pressing concerns.

Historically, the consequences of debt were invariably dire. Dickens described the horrors of the workhouse and debtors prison for those falling on hard times. While these no longer exist, our consumer society employs battalions of debt collectors who claim their pound of flesh just as ruthlessly. When the going gets tough, it’s hard to contact the smiling faces from the glossy TV advert.

Living off an overdraft is now commonplace for many of us. We have access to easily borrowed money to buy up an endless range of luxury goods advertised by those whose job description is to sell us what we don’t need. And when these spending sprees spiral out of control, the entire world suffers a financial crisis. When we personally get it wrong, we create a recession of your own.

In this environment, those struggling with mental health issues are particularly affected. People suffering from depression or bi-polar disorder may find their behaviour sends them into financial and emotional meltdown. When feeling down, ‘retail therapy’ is often the perceived solution. Unsurprisingly, this form of treatment was coined by retailers rather than the NHS! Being comforted by more possessions offers a similar short-term consolation to that offered by alcohol or street drugs. It has its own flavour of hangover and a similar risk of addiction. Those experiencing manic symptoms often spend irrationally – it’s a destructive behaviour associated with the condition.

Solving your debt crisis

The first priority is taking full stock and responsibility for your situation so that it remains within your control. When we are cash-strapped, it’s vital to challenge habits that contribute to our financial woes. If you’re willing to shop around, the consumer society does offer competitive choice in the high street or on-line. Big savings can be made. For those uncomfortable with new technology, ask a young person – they were brought up on it! The profits of many companies are gained largely from those who don’t do their research. While supermarkets often offer great deals, butchers, grocers, and street markets may surprise you with the cornucopia of goods available for much less than the High-Street chains. And healthy eating is invariably cheaper than living off junk food and takeaways. Shops selling high-quality second-hand goods are also booming as many amongst the middle-classes downsize their possessions for a simpler life. It seems silly not to take advantage. Food banks may be a sad sign of the times, but you can either use them in times of need or contribute to their stores and help the less fortunate.

Thankfully, professional treatment of mental health issues can now ease the debt that harms your mental health. Therapists can help unearth the emotional issues causing erratic behaviour as well as helping those falling into debt due to outside factors such as redundancy or some similar economic misfortune. Counselling can also signpost you towards specialist organisations that can help you tidy up messy finances and guide you to make better decisions. More generally, it will also look at key contributors to your emotional and physical heath such as diet, sleep, and exercise. Many in debt often know their actions make no sense, but simply don’t care enough to stop making these mistakes. Boosting your self-esteem in these areas can help you overcome self-destructive habits.

Organisations exist – see the list below – that offer practical ways to reduce this double whammy to your quality of life. This includes practical advice on managing debt, reducing interest payments, choosing better deals, how to budget, and what benefits you can claim. All these services, along with trustworthy friends and family, can help you make sensible changes to ease the burden. If they encourage you to open that mounting pile of red-inked letters, it’s the first important step to sorting out your long-term financial security.