Summary

 

Why and how do people get into debt?

How can mental health problems affect your finances?

How can debt affect your mental health?

Questions to ask yourself if you think you may have a debt problem

How do I get help?

How can I help myself?

Mental health and money are connected. Mental health problems can make earning and managing your money harder, and debt can trigger or worsen conditions such as anxiety, depression and stress.

 

Why and how do people get into debt?

There is a common misunderstanding that people find themselves in debt due to living an excessive lifestyle or going ‘wild in the aisles’ with credit cards. The truth is that unemployment and redundancy are the most common triggers for debt problems and can happen to anyone, no matter what their attitude to money may be.

 

Life changes such as losing your job, mental or physical health problems or separating from your partner can mean that you struggle to pay your household bills. Having to adjust to such a financial change can be difficult.

 

How can mental health problems affect your finances?

There are many reasons why mental ill-health can make it hard to manage your money.

 

If you’re depressed, you might not have the energy or motivation to keep track of your money. If you’re going through a manic episode, you may make rash or unwise decisions with your spending. If you need time off work or a hospital stay, you may be faced with a sudden reduction in income and difficulty keeping up with your bills.

 

Some mental health problems (and conditions such as dementia) may make it difficult or impossible for you to make decisions about money. The ability to make decisions is known as mental capacity. Someone else may have to make decisions on your behalf if you don't have mental capacity. Our page on mental capacity has more information, including ways to plan in case you become unable to make your own decisions.

 

How can debt affect your mental health?

A study from the Royal College of Psychiatrists around Debt and mental health found that half of all adults with a debt problem also live with mental ill-health. This ranged from a consistent feeling of anxiety and low mood to a diagnosed mental health condition.

 

Debt can make you feel anxious, especially if you don’t have support from friends or family or from your creditors. Debt can be a considerable burden, made worse by dealing with it alone.

 

Worrying about debt can affect your sleep. Losing out on a good night’s sleep can not only affect your mood and energy levels, it can also affect your ability to work or have good relationships with friends and family. All of these things can further add to your debt problem.

 

Questions to ask yourself if you think you may have a debt problem

Do I often feel anxious when thinking about how I will manage my repayments?

Am I struggling to make, or do I routinely miss the minimum payments towards utility bills, credit cards or rent?

Do I ignore letters from creditors?

Do I avoid calls from unknown numbers if it’s a creditor calling?

Am I unable to set aside money for an unplanned financial emergency such as redundancy, car expenses or emergency repairs?

If you answered ‘yes’ to any of these questions, then you may want to consider getting help.

 

How do I get help?

If you’re dealing with problem debt, you’re not alone. You don’t have to figure it out by yourself. Speak to a debt advisor for free from an organisation such as

Kenyatta National Hospital (KNH) Mental Health Services

KNH provides psychiatric services that address stress, depression, and anxiety, including those stemming from financial problems.

Contact: +254 709 854000 / +254 111 031000

Amani Counseling Centre

Amani Counseling Centre offers services for mental health issues, including stress and anxiety related to debt. They offer therapy sessions and group counseling.

Contact: +254 722 626 590

Website: Amani Counseling Centre

Financial Counseling and Debt Management

Credit Reference Bureau (CRB): If your mental health is affected by being listed by the CRB due to debt, you can contact them to get guidance on how to manage your credit record. They also offer advice on improving financial health.

Kenya Bankers Association: Some banks and financial institutions have financial literacy programs that also include mental wellness components, guiding customers through managing stress related to loans and debts.

Support Groups and Financial Literacy Programs

Joining support groups or financial literacy programs can be helpful. Some organizations focus on teaching financial management, debt repayment strategies, and ways to cope with financial stress:

Centonomy offers personal finance courses that include stress management when dealing with debt.

Financial Literacy Initiative Kenya (FLIK) provides education on budgeting and financial planning, helping individuals manage debt-related stress.

 

Talk to someone you trust too, whether that’s a friend, relative or someone supporting you with your mental health. Talking can help you feel less hopeless and alone, and they can help you make an appointment with a debt advisor if you need them to.