How Becoming Debt Free Can Improve Your Mental Health

Disclaimer: I may have been financially compensated or be gifted products from the companies mentioned in this post, unless otherwise stated. All opinions and thoughts are genuinely my own. If you wish to find out more, please see my DISCLAIMER page for more information.

Falling into debt isn’t just a financial issue. It can lead to the breakdown of relationships and families, people losing their homes, and negatively affect a person’s mental health in the process. Dealing with debt of any kind can have a direct impact on your psychological and emotional wellbeing. However, there are alternative ways to manage your money in the short term, and if you want to understand how debt and mental health are connected, read on to find out more.


Why do people get into debt?

Most people assume those who fall into debt do so as a result of living beyond their means and using credit cards to an excessive level.

In fact, in most cases it is redundancy and unemployment that are the root cause of many debt-related problems. And unfortunately, no-one is immune, which means it can happen to anyone at any time, no matter how prudent with money you may be.

Sudden changes in your life can lead to you struggling with money. It can be anything from losing your job to breaking up with your partner or dealing with grief. Quickly adjusting to a financial change in your life is hard, even if it doesn’t last for a long period of time.


How does being in debt affect your mental health?

When you fall into debt it can create a sense that there is no way out. Many people feel everything is out of their control and there is no solution available to fix it.

This can become worse if the debt is increasing, making you feel completely hopeless and that no matter what you do the outcome is only going to be the same.

Being in debt can also make you withdraw from people around you. A lot of emphasis is put on money in today’s society and it can be embarrassing to talk about a bad financial situation.

All of this can lead to feeling depressed and anxious, which increases stress levels and impacts on your ability to sleep. This makes it even more difficult to find the energy and strength you need to change things for the better.


What can you do to make a change for the better?

There is always light at the end of the tunnel and there is a solution available for every type of debt problem. Here are some positive, practical steps you can take to help you get on top of your debt and heading in the right direction again:

Think about how, why and when you spend your money. See if there is any connection to certain emotions that affect your frequency and type of spending you make. If you can identify the patterns of behaviour, then you are firmly on the way towards finding a way to change them.

Many people dealing with mental health issues withdraw from people close to them. If you can find the strength to talk to a partner, friend or family member, taking the weight off your mind can be a great help. They know you better than anyone else and can offer some practical and helpful solutions.

There are some really helpful organisations who offer free, expert advice on how to manage your debt. This can be anything from organising a debt repayment plan, to arranging free one-on-one counselling to help. Mental Health charity, Mind, offer great advice on where to find help, while the National Debt Helpline offer free, impartial advice on how to manage your debt.

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Disclaimer: I may have been financially compensated or be gifted products from the companies mentioned throughout my blog, unless otherwise stated. Posts on may contain items which have been gifted from a company, are a PR sample or paid for with a gift voucher. also contains sponsored posts, in which I have received paid compensation. All opinions and thoughts are genuinely my own. If you wish to find out more, please see my DISCLAIMER page for more information.


Louise Rose

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I'm Louise, a 28 year old blogger living in York. I'm a freelance blogger and Teaching Assistant. This is my corner of the internet, in which I cover topics such as mental health, travel, fashion, lifestyle and so much more!


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Upcoming Adventures:


February 2019 – Leeds
March 2019 – Manchester
April 2019 – Harrogate & Hull
May 2019 – Yorkshire Spa Break
June 2019 – Manchester & Disney Land Paris
August 2019 – Leeds & Beverley
September 2019 – Leeds