Money and Mental Health

Written by

Cara Bradley

7 min read

Updated: 11 February 2025

A survey carried out by Martin Lewis’s charity Money and Mental Health, revealed a huge 86% of respondents felt their financial situation had a negative effect on their mental health.

Both mental health and money worries can feel uncomfortable to talk about. While it might sound like a cliché, the most important thing to remember is that you don’t need to suffer in silence. Please know that whatever you’re facing, help is available.
You have nothing to feel ashamed of and you are not alone. Money worries can affect anyone at any time and one in four UK adults will experience periods of poor mental health each year.

Our guide aims to shed light on the link between money and mental health, while sharing ways that you can get help and work towards the future that you deserve.

When might money affect mental health?

Below are some examples of how your mental health might be affected by your financial situation.
Please be aware that these examples are for illustrative purposes only.

• You’ve been made redundant and searching for a new job is making you feel anxious.
• You’re expecting a baby. Budgeting for your new arrival has left you feeling very stressed, which is impacting your sleep.
• You’re struggling with money and feel depressed that you’re barely able to make ends meet each month. You worry about spending money, so you withdraw from friends and family, which leads to feelings of isolation and loneliness.

When might mental health affect your money?

We’ve listed some examples of how your mental health could have an impact on your finances.
Please be aware that these examples are for illustrative purposes only.

• You find yourself unable to work, either temporarily or long term, due to poor mental health. Your income is reduced as a result, and this makes you feel even more stressed, anxious, or depressed.
• You need to cover the cost of expenses relating to a mental health condition; for example, private therapy or medication. This is taking its toll on your monthly budget.
• You have a tendency to spend recklessly when going through an episode of poor mental health. You might even spend more money than you can afford, which could result in you getting into debt. This can increase stress levels and lead to feelings of shame and guilt.

As you can see from the scenarios we’ve listed above, mental health and money worries can sometimes overlap and feed one another.
If left unresolved, mental health and financial worries can really take their toll, but it doesn’t have to be this way. There are several things you can do that could help to relieve some of the pressure.

What to do if you’re struggling with your mental health and financial situation

When life feels like it’s spiralling out of control, start by working on the things you can change, even if it seems like the smallest, most insignificant action. This could include speaking to a trusted friend, family member, or professional about how you’ve been feeling, setting a monthly budget, or simply remembering to be kind to yourself.
Sometimes, taking that first step towards getting help can make all the difference to your confidence.

• Create a budget
  When we’re worried about money, it can be tempting to bury our head in the sand and hope that the problem will go away, but it’s better to tackle the issue head on, one step at a time.
  If you haven’t already, you may wish to set some time aside to go through your monthly income and outgoings. This could help you understand what you’re working with.
  
  1. Work out the amount of money you’re guaranteed to receive each month, including your wages and any benefits, if applicable.
  
  2. Once you have an idea of your monthly income, you can make a list of your essential outgoings, such as mortgage or rent, bills, groceries, or credit agreements.
  
  3. Deduct your outgoings from your overall monthly income. The money you’re left with after these deductions is your disposable income.
  
  4. Next, go through your outgoings in closer detail. If you’re paying for any subscriptions or Direct Debits that you’re no longer making use of, such as a gym membership or a streaming service, you might wish to cancel these.
  

  Working out your monthly budget can be overwhelming. If you’re not sure where to start, MoneyHelper’s free budget planner could be useful.



• Check to see whether you’re missing out on any benefits
  Use the free Benefits Calculator on the Turn2Us website to work out whether you could be eligible to receive some financial support.


• Browse through cost-of-living support
  The Gov.uk website lists various cost-of-living support initiatives that could be available to you, including help for the over 60s and funding for childcare and maternity costs.


• Check your entitlement for help with NHS costs
  Depending on your circumstances, you might be able to get help with certain NHS costs, including prescriptions. You can find out more and check your eligibility on the NHS website.


• Could you get Access to Work support for a disability or health condition?
  Check your eligibility on the Gov.uk website. Certain health conditions could mean that you’re entitled to specialist equipment, help with commuting costs, and one-to-one support with a mental health professional.


• Food banks
  Being unable to afford food can lead to a range of both mental and physical health concerns. Food banks can provide access to essential groceries for those who might be homeless, unemployed, or employed but on a low-income.
  For further information on how to get a food bank referral, please visit Citizens Advice.

Useful resources for money and mental health

If you’re struggling with your mental health, you should make an appointment with your GP as soon as you can. You do not deserve to feel this way and the sooner it’s addressed, the sooner you can start to feel better. Asking for help can feel like a huge step, but it’s the most important one you’ll take. You’ve got this.

Below are some other mental health and financial charities you may wish to reach out to.
If you need urgent help with your mental health, please click here.

• Mind
  Mind is a UK-based mental health charity. On their website, you can find advice on an array of topics and mental health conditions. You can also contact their helpline.
  You might be interested in reading Mind’s dedicated mental health and money page.


• Samaritans
  If there’s something on your mind and you’d like someone to talk to, you can call the Samaritans for free on 116 123, 24 hours a day, 7 days a week.


• Money and Mental Health
  Launched in 2016, Martin Lewis’s charity Money and Mental Health offers advice on an assortment of financial topics, including gambling, benefits, and debt.


• StepChange
  Viva Money has teamed up with StepChange to create a free, confidential money health quiz. Simply answer a few questions about your financial situation and StepChange will share tips on what you can do next, including how to access support and guidance.


• Free money management and debt advice
  The following charities and organisations provide free, impartial advice on a range of money and debt related topics. You can either browse the information on their websites or contact a trained advisor. Please click through to each website for ways to get in touch.
  
  1. MoneyHelper
  2. Citizens Advice
  3. National Debtline

Let’s talk about debt

‘Problem debt’ typically describes a situation where someone has taken out credit and is struggling to pay back the money they owe. This could be a credit card, a personal loan, or a mortgage.
It’s estimated that 1.5 million people in England are experiencing both mental health concerns and problem debt.

If you’re finding it difficult to afford your monthly repayments, you should contact your credit provider. Again, we understand how daunting this may feel, but please know that reaching out and asking for help is a move in the right direction when it comes to taking back control of your finances.
Your credit provider will appreciate the fact that you’ve been honest and upfront and will not judge your personal situation. Instead, they’ll listen with empathy and work with you to put a plan in place moving forwards.
Every credit provider is different, but they may be able to offer help in the form of a repayment holiday or agree to temporarily reduce your monthly repayments.

Financial abuse

Shockingly, one in five women and one in seven men in the UK have experienced financial abuse, which is often also referred to as economic abuse.
Over a third of women who have been affected report that financial abuse led to poor mental health, including panic attacks and depression.
Nobody has the right to threaten, intimidate, or control you in any way, be it physically, emotionally, or financially.
Viva Money has put together a guide to financial abuse which covers some key information, including signs to look out for in yourself and others, how to seek help, and charities you can contact for guidance and support.
If you’re in immediate danger, please call the police on 999.

You’re more than your financial situation

In isolation, money worries and mental health struggles are challenging, but when the two come together, it can be difficult to know what to do or where to turn.
We hope the information in our guide has been of some use to you, even if to simply remind you that you absolutely don’t have to go through this alone.
You are more than your financial situation, and you are not defined by your mental health. While things may feel bleak at the moment, it won’t always be this way.
Focus on taking one step at a time until you feel better again. You have a life that you deserve to go and live.

The information contained in this article is meant as a general guide and does not constitute nor should be taken as advice. 
February 2025.