HOW MENTAL HEALTH CAN AFFECT THE WAY YOU DEAL WITH MONEY
Mental illness can affect people in a variety of ways. However, one common issue faced by many is a struggle with their finances. A change in spending patterns and feeling overwhelmed by bills can put people into a situation where they may need professional help for a debt fix. In fact, the Melbourne Institute reports that 31% of all Australians are experiencing financial stress, while 24% are experiencing mental distress. Here are some of the ways that your mental health can affect your capacity to manage your finances and debt.
A CHANGE IN SPENDING HABITS
Many people who suffer from conditions such as depression may experience a loss of hope. If you’re unable to see a positive future, there is often a temptation to forego saving and financial planning. For those suffering from a mental illness, out-of-character spending/behaviour can be a symptom, and this can often lead to financial problems.
It might be an impulse purchase of a brand-name clothing item to boost your self-esteem. Perhaps a luxury item that gives you a momentary surge of pleasure. A change in spending habits may lead to financial difficulties, and this can be more heightened for those of us experiencing mental health issues.
A DECREASE IN ENERGY LEVELS FOR FINDING A DEBT FIX
When the bills are piling up and you feel overwhelmed, it’s difficult to see a way through it all. This is the case for most people, so when you add in symptoms of depression and anxiety, it can become even harder. You’re low on energy, you may also have trouble concentrating. It’s easy to become overwhelmed to the point you can’t even find the right resources to help with debt management. Often people don’t have the capacity to comprehend notifications from their creditors, let alone respond to their requests. This can lead to calls from debt collectors or long-term problems on your credit file.
A LOSS OF CONTROL
For many people with mental health issues, there can be a feeling of losing control. This often starts with an inability to control one’s own mood or emotions and leads to further feelings of distress. It isn’t uncommon for people with a mental illness to seek out ways they can feel in control. One of the ways people do this is by controlling their ability to make purchases. Even if those purchases aren’t wise or essential.
It’s quite common for this type of spending to require credit card management in the long term.
PROBLEMS MAINTAINING EMPLOYMENT
Mental health issues don’t discriminate. It’s an extreme example, but one day you could be a well-paid executive, and you could lose it all due to your struggles with mental health. The bottom line is, no matter what your earning capacity was before you became unwell, a mental illness can drastically impact your ability to earn a living.
Many people find themselves earning less income because they’re no longer able to hold down the job they once had. If you have personal debts such as loans or a mortgage, it can become difficult to keep up. Plus, it’s even harder to accept your lifestyle may need to change.
There is a debt fix out there
If you’re in a situation where you don’t think there’s a debt fix, we’d love you to reach out. Our financial advocacy service has a strong focus on mental health and every plan is tailored specifically for the needs of each individual client. So, for credit repair and other debt management services, contact the team at Small Village for a free debt consultation today.
