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If you’re struggling with your mental health and money worries, you’re not alone. The link between the two is strong – and it’s something we see and understand every day.

 

In fact, research from the Money and Mental Health Policy Institute[1] found that nearly one in five people with mental health problems are also in problem debt. And those experiencing mental health challenges are 3.5 times more likely to be in problem debt than those who aren’t.


At PayPlan, we know how overwhelming it can feel when your financial situation and mental wellbeing start to impact one another. It can feel like a cycle that’s hard to break – but support is out there, and you don’t have to go through it alone.

How our emotions and spending habits are connected

If you’ve noticed that your spending patterns change depending on how you’re feeling, you’re not alone. For many people, emotional wellbeing and money are closely linked. Sometimes, understanding that link is a helpful first step to regaining a sense of control.

Here are some questions you might want to consider:

  • What tends to trigger your spending?
  • What motivates you to save?
  • How do you feel when you spend money – and how is that different to when you save?
  • Are there particular money tasks or bills that cause you stress?

Try jotting down how you feel when spending or budgeting, alongside what you’re spending money on. A simple diary can help you spot patterns, triggers or emotional links – and make managing your money feel that little bit easier.

Overspending when you’re not feeling your best

When your mental health takes a dip, it’s completely natural for your money habits to change too. Some people find themselves spending more when they’re feeling low, anxious or overwhelmed. This might mean:

  • Looking for comfort in purchases to feel better in the moment
  • Making impulsive decisions during periods of mania or hypomania
  • Dealing with compulsive behaviours, like gambling, that lead to unexpected costs

If this sounds familiar, please know you’re not alone – and recognising the pattern is a powerful first step towards taking back control.

You’re not alone

Debt can feel isolating, but so many people are going through the same thing – and talking about it can really help.

That’s why we created our Debt Diaries series, where real PayPlan clients share their experiences. In one episode, Ralph opens up about how debt impacted his mental health, and the difference it made when he reached out for support.

Watch Ralph’s story here: https://www.youtube.com/watch?v=UPtoD7iftcg

Looking after your mental health while managing debt

It’s just as important to care for your mental wellbeing as it is to get support with your finances. Here are some steps that may help:

  1. Acknowledge how you’re feeling: It’s okay to feel worried, but help is available.
  2. Talk to someone you trust: Opening up to a friend or family member, if you feel you can, can make a big difference.
  3. Let your bank know: They may be able to offer additional support if you let them know you’re struggling.
  4. Speak to a debt advisor: We’ll help you understand your options and support you every step of the way.
  5. Reach out for mental health support: We work closely with over 140 organisations and can refer you to extra support when you need it.  
  6. Create healthy boundaries when spending: Removing saved cards from websites or your phone can help with avoiding impulse purchases.
  7. Reduce temptations: Try deleting shopping apps or reducing time on social media if you find they encourage you to spend.
  8. Find positive distractions: Activities like walking, listening to music or talking with someone can help lift your mood.
  9. Pause before buying: Use the “wait until tomorrow” rule to curb impulse spending.

We’re here to help

If debt’s affecting your mental health, you don’t have to go through it alone. We’re here to listen, support you and help you find the best way forward.

Call us on 0800 813 1833, chat with us via Live Chat, or fill out our form to connect with us on WhatsApp.

For more help managing your money day-to-day, check out BudgetSmart – it’s full of practical tips to help you stay in control all year round.

[1] https://www.moneyandmentalhealth.org/wp-content/uploads/2024/06/The-Facts-updated-2024.pdf