Debt and mental health: 6 of the best tips to support your wellbeing while navigating money, finance worries
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Learn how to protect your wellbeing and stay grounded when finances feel overwhelming 💭
- Financial stress can affect both your wellbeing and mental health
- Debt and money worries often create a cycle of anxiety and overwhelm
- Being mindful about finances can help you regain a sense of control
- Small, practical steps can make a big difference over time
- Seeking support early is key to managing stress and financial pressure
Money and mental health are closely linked, and financial stress can take a heavy toll on our wellbeing.
With World Suicide Prevention Day on Wednesday, September 10, it’s a timely reminder that struggles with debt, bills, and money worries can contribute to feelings of hopelessness, anxiety, and depression.
Acknowledging the impact of financial stress on mental health is an important first step in protecting yourself and seeking support.
By staying mindful and taking practical steps, it’s possible to regain a sense of control and resilience, even in challenging financial times.
1. Acknowledge the connection between stress and spending
Financial struggles often trigger a heightened stress response, and when you’re worried about bills or debt, your body releases cortisol, the “stress hormone”.
This can cloud decision-making and increase the temptation to spend impulsively as a coping mechanism, and you might notice patterns like “retail therapy” purchases or avoiding looking at your statements altogether.
The first mindful step is simply to notice these patterns without judgment. Awareness puts you back in control.
Acknowledge when financial anxiety is influencing your mood or behaviours, and remind yourself that these responses are human, not personal failings.
2. Break problems into manageable steps
Debt feels overwhelming when viewed as one giant, immovable problem. Instead, break it down into smaller steps you can actually tackle.
For example, you could write down all your debts and prioritise the most urgent bills (rent, energy, council tax), or contact creditors to discuss payment plans or breathing space schemes.
You could also look into free debt advice services such as StepChange or National Debtline.
Mindfully focusing on one small task at a time prevents your brain from spiralling into “all or nothing” thinking. Every action, no matter how small, sis a step toward regaining control.
3. Practise Mindful Money Habits
Mindfulness is about staying present, and that applies to money as well as meditation. Some practical habits include:
- Check in daily: Take a few minutes to review your balance, bills, and spending. Doing this consistently removes the fear of the unknown.
- Pause before purchases: Ask yourself if spending aligns with your needs and values, or if it’s a response to stress.
- Celebrate progress: Each time you stick to a budget, make a payment, or avoid an unnecessary purchase, acknowledge the achievement.
These rituals keep you grounded and reduce the sense of finances “happening” to you.
4. Protect your mental health
Money worries are draining, and if left unchecked, they can lead to anxiety, insomnia, or depression. Protecting your mental health is just as important as tackling the debt itself. Strategies that help include:
- Setting boundaries: Limit how much time you spend worrying about money. For example, dedicate 20 minutes a day to finances, then step away.
- Grounding techniques: Breathing exercises, short walks, or journaling can interrupt spirals of financial anxiety.
- Seeking support: Share your situation with a trusted friend, or reach out to mental health services if stress becomes overwhelming.
Remember, taking care of your wellbeing isn’t “avoiding the problem”, it strengthens your ability to handle it.
5. Separate self-worth from net worth
One of the most damaging aspects of financial struggle is the shame that comes with it.
Many people equate debt or hardship with personal failure, but circumstances - job loss, illness, cost of living increases - play a huge role. Remind yourself: your value is not defined by your financial position.
Mindfulness practices, like repeating affirmations or keeping a gratitude journal, can help shift perspective. Focus on what you can control today, not on self-blame for the past.
6. Reach out early for help
The hardest step can be asking for help, but it’s also the most powerful. Organisations like Citizens Advice, StepChange, and Mind offer free and confidential support for both financial and mental health struggles.
By reaching out early, you can often access breathing space schemes, freeze interest charges, and find repayment solutions that reduce pressure.
The Samaritans can offer information and support for anyone affected by the content of this article. You can call their helpline on 116 123 or email [email protected] in the UK.