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Depression and debt are connected Debt Leads to Emotional Distress

I decided to post this as i think people need to be aware of how closely debt and depression are linked.

Nearly 9 out of 10 people with significant debt problems appear to be suffering from mental health disorders, in particular depression and anxiety. these are stats from the  Consumer Credit Counselling Service (CCCS), many banks are now setting up special mental capacity/health units in their debt collection teams, and why the Office of Fair Trading (OFT) has just issued guidance in the area.

Debt can make you feel helpless, hopeless, and low on self-esteem — and these are all symptoms and risk factors for depression

When Depression Leads to Debt

It’s easy to understand how the stress of debt can trigger or worsen depression, but you may not realize that depression can also lead to debt problems.

‘Some people may try to relieve feelings of depression by compulsive shopping. Depression is often associated with destructive and addictive behaviours that can result in overspending’

Source Professor Dr. Kaslowin the department of psychiatry and behavioural sciences at Emory University School of Medicine in Atlanta.


Only those who have had to deal with major debt issues will understand the statement, ‘he who knows it feels it’

Can you imagine what it’s like!

Wondering if you would get through another month without falling into further debt,

  • Being too frightened to open your post!
  • Frightened to answer the telephone
  • Trying to keep your debt a secret from other members of your family.
  • The affect it has on personal relationships with partners and family.
  • What impact would your debt have on your own children’s future?
  • Fear constantly thinking about the debts.

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So you have a better understanding of what your friends or family may be going through an interesting article to read is Martin Lewis’s in the red report

Martin Lewis ‘in the red’ report

This report explores the relationship between debt and mental health. It includes a survey of the experiences of debt among 1,804 people living with mental distress or using mental health services. The survey focused on their use of credit and loans over the preceding 12 months, and the impact of debt problems on health and quality of life.

One in four people will experience a mental health problem during their life (Goldberg and Huxley, 1992). It is difficult to separate the inter-relationship between debt and mental health, but the links are clear.

Being in debt can negatively affect a person’s mental health, while living with a mental health problem increases the likelihood of falling into debt.

Many people do not consider themselves as someone in debt or with a debt problem try the debt test below if you answer yes to one OR more of the questions you may have a debt problem.


Debt test

1.Do you keep your spending habits a secret from your partner or family?



  1. Have you used a credit card or any other form of credit to pay your bills?



  1. Do you have sleepless nights worrying about debt?



  1. Have your creditors contacted you about a missed payment?



  1. Do you dread the post out of fear you might receive letters from your creditors?



  1. Are you struggling to pay your household bills?



  1. Do you frequently have arguments at home about money?



  1. Have you applied for any credit in the last six months?



  1. Have you missed any credit payments in the last six months?



  1. If you lost your job, would you be under immediate financial strain?



Try this test online to see the results: link for the debt test.

If you are seeking advice and support to manage your debts from an agency such as Stepchange, e.t.c it is important that you make them aware that you have a diagnosed condition to ensure that Debt and Mental Health Evidence Form may be completed on your behalf.

Debt and Mental Health Evidence Form.

The Money Advice Liaison Group (MALG) created the ‘Debt and Mental Health Evidence Form’. This form may be given to you by a debt adviser to ask for information about your mental illness from health and social care professionals. The creditors can then use the information to help them deal with your account.

Advisers must use the information only for the purpose stated on the form, namely to improve their understanding of the consumer’s mental health to ensure you are supported appropriatley.

How is this information used?

If you tell your creditors about your medical condition, they can use this information to make decisions about your account. This Information will be kept on file for as long is needed for their business purposes the creditors are not allowed to share this information with other organisations.

Here are the 3 simple ways that can be used to manage debt:

  1. Tell the truth.

When you are in debt you tend to think that if you ignore the debt it somehow it would magically disappear. This does not work try and sit with a trusted friend and complete and income and expenditure.

Taking this step will make you feel great

  1. Pay attention.

When you pay attention things grow if your ignore money and don’t think about how much you earn and how much you spend you will never have anything. Start really small checking my bank account balance every morning or weekly

  1. Stop being critical.

If you continue to beat yourself up about past financial mistakes you will not be able to improve your financial circumstances remember to continue to look forward.






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