Dealing with financial concerns can have a significant impact on mental health, and poor mental health can make it even more challenging to manage money. However, there are steps you can take to regain control and stop the cycle. Liz Hunter, director at Money Expert, provides tips for taking control of your finances and improving your mental well-being. Whether you're struggling with debt or feeling overwhelmed by the cost of living crisis, there is support available.
Share Your Concerns and Seek Support
It's important to reach out and share your financial worries with family and friends. They can provide both emotional and practical support, helping you reorganize your finances. There are also free and confidential resources available to you. Start by contacting Citizens Advice to discuss debt management, benefits, and housing support. Additionally, speak with your bank or creditor for money management advice and possible repayment plans. If you're struggling with utilities, contact your provider to explore cheaper tariffs, payment plans, and available grants.
Consolidate Your Debts
Having debts spread across multiple loans, credit cards, and overdrafts can be overwhelming. Consolidating your debts into a single loan with a lower interest rate can reduce stress and improve mental health. There are two main methods of debt consolidation: a fixed-rate debt consolidation loan or a 0% interest balance-transfer credit card. Seek expert advice to determine the best option for your situation.
Find Affordable Ways to Borrow
Research shows that 50% of adults struggling with debt also have mental health issues. If you need to borrow, it's crucial to do so in the most affordable way. Avoid payday loans and loan sharks, as there are always alternatives available. Explore options for interest-free or cheap loans to reduce the potential impact on your well-being.
Cut Your Bills and Save Money
Allocating time to review and reduce your electricity, broadband, and insurance bills can save you thousands each year and alleviate financial stress. When it comes to car insurance, renew your policy two to three weeks before it expires to secure better rates. Use comparison sites to find the best deals. When it comes to broadband, consider your usage and choose a plan that suits your needs. Don't overlook the opportunity to negotiate a better deal with your current provider. Finally, double-check your Council Tax band to ensure you're not overpaying. Seek advice if you're unable to pay your bill to avoid severe consequences.
Apply for Grants and Benefits
If you're struggling to meet your financial obligations, even if you work and own your home, you may be eligible for grants and benefits. Research the Cost of Living Payment, Welfare Assistance or Household Support Funds, and charitable grants that can help with living costs. Visit Citizens Advice for a comprehensive list of available support.
Consider Switching Your Bank Account
Switching your bank account could improve your financial situation and has become easier with the current account switch service. Banks offer various benefits and deals, including interest-free overdrafts and cash rewards. Compare different banks' offers and consider long-term benefits beyond short-term perks. Take into account interest rates, overdraft charges, and account fees when making a decision.
Start Saving, No Matter How Small
Saving money regularly can have a positive impact on mental health and reduce stress and anxiety. Explore different strategies to build savings gradually. Turning on round-ups within your banking app can help you save extra money with each transaction. You can also try the 1p saving challenge, starting with 1p on the first day and adding an additional 1p each day. Another option is opening an easy-access savings account and automating monthly deposits.
Remember, there are resources available to help you with both your financial and mental well-being. Reach out to trusted organizations such as Money Helper, National Debtline, StepChange Debt Charity, and mentalhealthandmoneyadvice.org for free guidance and support. Take the necessary steps to break the cycle and regain control of your finances and mental health.
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