The Truth About Money and Mental Illness in 3 Minutes
New research is exploring the link between money and mental illness. They are more intricately connected than you could ever begin to imagine as research shows that one out of every five people struggling with a debt burden is under additional strain from a mental health problem, severe illness, or a life event such as the recent bereavement of a loved one. In this article, we will explore the truth about money and mental illness.
Debt Charity Program Research Reveals Link Between Money and Mental Illness
A debt charity program called StepChange conducted research in 2017 to determine the top factors for debt. Their findings revealed that one in five clients suffered from an additional vulnerability such as illness on top of their debt. These clients were found to be in a significantly worse position compared to the rest of StepChange’s clientele. The biggest factor was mental health determined by a statistic of 43%, followed by physical disability 4.7%, cancer 4.6%, and poor health 4%.
Debt is closely related to vulnerabilities of a health nature. According to StepChange’s analysis titled: “Breaking the Link: A Closer Look At Vulnerable People in Debt”, 77% of clients with a terminal illness and 68% of clients with cancer all cited illness as the number one cause of their debt problems. Among clients with mental health issues, 40% cited additional illness as the main cause for their debt. StepChange’s Debt Charity chief executive Phil Andrew stated concerning the research: “Among our clients, those who are vulnerable typically show higher levels of financial distress — but that shouldn’t be inevitable. While there has been progress, it’s clear that the finance sector, regulators and the debt advice sector could all still do more to help break the link between being vulnerable and being significantly worse off.”
Resources Available for Individuals Whose Money and Mental Illness Struggles Are Related
Fortunately, there are resources available to individuals who have issues with money and mental health. For example, in England, BadCreditSite is making a difference by enabling individuals with poor credit to take loans for amounts ranging from 100 to 5,000 British pounds.
BadCreditSite is a website authorized by the FCA (Financial Conduct Authority) that allows people with bad credit to access a variety of payday loans that can be taken without impact to the individual’s credit score. These payday loans include short-term, bad credit loans, and doorstep loans. One of the advantages of utilizing BadCreditSite as a service is that you only have to make one loan application to find the cheapest lender. An individual applying for a loan can receive the cash in as little as 15 minutes depending on the circumstances, and there are no hidden charges.
A poor credit score does not prohibit the individual from applying for the loan because BadCreditSite matches customers with payday loans at affordable interest rates. This way there is no footprint on the individual’s credit rating. What is a payday loan you ask? According to BadCreditSite: “A payday loan is a short-term unsecured loan that is sometimes referred to as a payday advance. Anyone over the age of 18 years old who is a UK citizen and has stable income can apply for an online payday loan. Having a less-than-perfect credit score does not mean you are unable to obtain an affordable loan from a direct lender online.”
However, these loans do have to be paid back eventually and preferably without long, entangling strings of interest attached that have the potential to trip mental health sufferers up further down the road. Payday loans are a good solution for financial emergencies, but they are not always the best option because payday loans can become expensive if you don’t select the correct lenders or loan terms. Interest incurred on missed payments can reach a variable of 140.0%. Plus, these missed payments can result in further damage to an already poor credit rating.
A safe rule of thumb would be to only get a payday loan through BadCreditSite if you are confident that you can repay the loan in a timely manner. This is especially true for individuals carrying a burden of financial debt related to money and mental illness. To learn more about payday loans in the UK, please visit BadCreditSite here.
Institute for Fiscal Studies Reports Findings For Money and Mental Health Link
The Institute for Fiscal Studies (IFS) issued a report titled: “Living Standards, Poverty And Inequality In The UK: 2018” which was funded by the Joseph Rowntree Foundation. The report’s findings suggested that among 25 to 54-year-olds, 28% suffered from a longstanding health problem and 40% of those with a mental health disorder are in relative poverty. This equates to an income below 60% of the median average income after deducting housing costs. This statistic compares to approximately 18% for those not suffering with a longstanding health problem.
No mental health disorder should have to result in poverty. We must take steps to change this in our society by recognizing all mental illnesses as very real medical conditions. These mental illnesses such as bipolar, anxiety, schizophrenia, depression, and many others are not “just in their heads” as many people believe. This misguided philosophy is contributing to the rise of problems related to money and mental illness. These individuals need our support and compassion, not our judgement.
San Diego Couple Frees Themselves from $133,000 Debt
San Diego couple, Amanda and Josh Williams, faced an overwhelming $133,000 worth of debt in 2014 that was the result of credit cards, vehicles, and student loans. By this July, they joyfully announced that they will be debt-free. Amanda completed Dave Ramsey’s Financial Peace University course, but she also recommends his book: The Total Money Makeover.
These are resources that anyone, even someone suffering from money and mental illness related problems, can use and follow to become debt-free. Like the Williams, some determination, sacrifice, and support are also in order for anyone trying to extricate themselves from massive debt.
In conclusion, the link between money and mental illness should not have to result in debt or poverty. Individuals can receive help and support through various resources including loans, financial courses, and books. Financial stress can further contribute to mental illness. Don’t be afraid to ask for help because there is always hope!