If you’re struggling with your mental health, and you’ve got money worries, there is support out there. Lenders are often more understandable than you may think. They may offer a change in your repayments, a payment holiday, or support through the Mortgage Charter. There are also charities out there that can offer life-changing mental health support, and we’ll list them in this article.
“Money worries and mental health can easily become a vicious cycle. Stress makes it harder to deal with bills, and unopened bills make the stress worse. The he first step is to talk and know that there is always support, both from a financial perspective – and for your health & wellbeing.
Speak to your lender early, as they deal with these situations all the time and often have more options than you’d expect. Small steps help too, like writing down what comes in and goes out.
Several charities also have specially trained staff who can listen – and offer practical support. We’ve listed a few in this article.”
Rachel Geddes
Strategic Lender Relationships Director
How money worries can affect your mental health
Money worries are stressful, and if you’re feeling the strain, you’re far from alone. Money and mental health are closely linked, and taking care of one can sometimes help with the other.
When your mental health dips, managing money can feel harder. You might avoid opening bills, feel overwhelmed by everyday tasks or spend to feel better in the moment. The two issues can feed into each other, and it can start to feel like a cycle that is tough to break.
These feelings are incredibly common, especially when everything costs so much.
The good news is that there are things you can do, and there are also plenty of free support available.
The link between money and mental health
Financial anxiety is common, but when you’re also suffering with your mental health, it can doubly difficult. Stress about bills, debt or not having enough money can lead to low mood, guilt, shame and feeling overwhelmed. Many also experience sleep problems when they’re worried about money.
How common money worries are
Anxiety over money affects people of all ages and backgrounds, especially with the cost of living right now. Rising costs mean more people are struggling with day-to-day expenses, and many feel anxious about their financial future.
If you’re struggling with money, it doesn’t mean you’ve done anything wrong.
How mental health can affect the way you manage money
Poor mental health can make budgeting, planning and decision making harder. You might overspend, avoid checking your bank account or feel unable to deal with financial tasks. These behaviours are common and understandable, especially during periods of stress or low mood.
That’s not a failing. It’s a sign you could use some support, and managing money and mental health together can help.
Signs that money is affecting your wellbeing
Financial anxiety can creep up quietly. Here are a few signs to look out for.
Trouble sleeping
Lying awake going over your bills? Worrying about money is one of the most common reasons for a bad night’s sleep. And poor sleep can make everything feel harder the next day.
Avoiding bills and post
Do you leave letters unopened or avoid checking your bank balance? Money anxiety can make even opening a letter or answering a phone call feel scary. It’s a very human reaction. But facing things is often less scary than the worry of not knowing.
Impact on relationships and social life
Money worries can lead to tension at home. You might snap at loved ones or turn down nights out to save cash. Some people stop talking about money altogether, which can feel particularly lonely.
Changes in spending habits
Spending more to cope, or cutting back on everything, can both be signs. If your habits have changed and you’re not sure why, it’s worth pausing to think about how you’re feeling.
Practical ways to take control of your finances
Small steps can make a big difference. Dealing with money worries doesn’t mean fixing everything at once. Start with one or two changes and build from there.
Tracking your mood and spending
Try noting your spending and how you feel each day. After a few weeks, you may spot patterns. Maybe you spend more when you’re stressed. Spotting it is the first step to changing it.
Creating a budget
A budget helps you see what is coming in and going out. It can reduce anxiety by giving you a clearer picture of your finances. Budgeting is one of the most effective ways to manage money worries. Here are a few budgeting tips: list what comes in and what goes out, cover the essentials first, then see what’s left.
Building an emergency fund
If you’re able to, building a small emergency fund can help you feel more secure. It can give you a buffer for unexpected costs and reduces the immediate pressure of living month to month. A good goal is three to six months of essential spending. But any amount can give you breathing space.
Dealing with debt one step at a time
Debt can feel overwhelming. Break it down. List what you owe, check interest rates and tackle one at a time. If it feels like too much, free debt help is there. We’ve listed some options below.
Talking to someone you trust
Sharing your worries with a friend, family member or professional can help you feel less alone. Just saying it out loud can help with money worries.
Worried about your mortgage payments? What you can do
Mortgage stress is real. If you are struggling with your mortgage payments or worried about falling behind, there are practical steps you can take.
Talk to your lender early
Lenders speak with people all the time about this and they have to treat customers in vulnerable circumstances fairly. If you tell them you’re struggling, they may be able to offer temporary support, like switching to interest-only or extending your term. Both of these will lower your payments.
Letting them know early gives you more choice, and it’s often a relief once you’ve done it.
Options your lender may offer
If you’re finding it hard to keep up, your lender may offer mortgage support such as:
Extending your mortgage term to lower your monthly payments
Switching to interest-only payments for a short time
A temporary payment break, or part interest, part repayment
A review of your current deal
These options depend on your circumstances, but lenders are often more flexible than people expect.
Support under the Mortgage Charter
The Mortgage Charter gives homeowners extra support if they are struggling with payments. It includes options like temporary interest-only or extending your term for eligible customers, with the option to switch back within six months.
Many of the UK’s biggest lenders have signed up to the charter. You can see lenders on the list here. If you do fall behind, lenders in the Charter usually won’t repossess your home for at least 12 months from your first missed payment. This gives you time to get back on your feet.
Remortgaging or switching deals
A new deal could cut your monthly payments, especially if your fixed rate is ending. It’s worth comparing options before your current deal runs out. A mortgage adviser can search the market for you and talk you through what’s possible.
Use our Mortgage Repayment Calculator to see how much your mortgage payments are likely to be based on interest rates and terms
How protection can give you peace of mind
Part of money worries is the “what if”. What if I can’t work? What if something happens to me?
Protection policies can help reduce financial stress by giving you a safety net if something unexpected happens. Read our protection guide here.
Income protection
Income protection pays a monthly income if you cannot work due to illness or injury. It can help cover your bills and mortgage payments while you recover. Many policies also cover mental health conditions, so income protection for mental health can be an important part of the picture. It’s worth checking the details.
Critical illness cover
Critical illness cover pays out a lump sum if you’re diagnosed with a serious illness listed in the policy. You could use it to help with the mortgage, bills or time off work.
Life insurance
Life insurance provides financial support for your family if you die. Many people use it to cover the mortgage or provide long term security.
Checking your financial resilience with our Financial Risk Assessment
Wondering how you’d cope if your income stopped? Our Financial Risk Assessment shows how prepared you are. It takes a few minutes and could help you spot gaps. Think of it as a financial health check, and a good boost for your financial wellbeing and financial wellness.
Where to get free help and support
You don’t have to go through this alone. These organisations offer free, friendly help.
Debt and money help
MoneyHelper: free, government-backed money guidance
Citizens Advice: free advice on money, debt and housing
StepChange: free debt advice and support
National Debtline: free, confidential debt advice
These are great places to start if you want help with money worries.
Mental health support
Mind: information and support for mental health
Samaritans: you can call them free on 116 123, any time, if you need someone to talk to
NHS: your GP can talk through support, and you can often refer yourself for talking therapies
If you ever feel you can’t cope, please reach out to one of these services or your GP today.
Money and Mental Health Policy Institute
The Money and Mental Health Policy Institute is a research charity. Its website has useful guides on money for mental health and how the two connect. It’s well worth a look if you want to read more about the topic.
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Something to bear in mind...
Frequently asked questions
Money worries can cause stress, anxiety and low mood. They can also affect sleep, relationships and daily life. Taking small steps, like making a budget or talking to someone, can help.
Contact your lender as soon as you feel able to. They have teams who help people in this situation, and may offer options like a term extension or a short interest-only period. Free debt advice from MoneyHelper, StepChange or Citizens Advice can help too.
Yes. Mental health and mortgages aren’t a barrier on their own. Lenders mainly look at affordability (your income, outgoings and credit history). A mortgage adviser can help you find the right lender for your situation.
Often, yes. Insurers will ask about your health history, and some may add an exclusion or change the price. Others may offer standard cover. Always answer honestly. A protection adviser can approach the right insurers for you.
In most cases, yes. Lenders would much prefer to help you than see you fall behind. Call them early, be open about what’s going on and ask what support is on offer.