Debt support for customers with mental health issues
Money worries can have a huge impact on your mental health, leading to anxiety, sleepless nights and an inability to focus. Certain mental health conditions also increase the likelihood of getting into problem debt.
Research by the Money and Mental Health Institute shows that in England alone more than 1.5 million people are facing both debt and mental health problems. And the rising cost of living is making the situation even worse for many.
Where to go if you need support with both debt and mental health issues?
Here at Money Wellness, we understand that debt rarely happens in a vacuum. Nearly 60% of our customers disclose at least one vulnerability. People can be classed as vulnerable for a variety of reasons. You may have a physical disability, you may have suffered a bereavement, lost your job or you may be pregnant. In many cases though, people are vulnerable as the result of a mental health condition.
How we help customers who disclose a mental illness
Our advisers receive extensive training on how to support people battling against poor mental health. However, in some cases, customers need specialist help. In cases like these, we refer to organisations like Rethink Mental Illness. In the course of a year, we make about 5,000 such referrals.
About Rethink Mental Illness
Rethink Mental Illness was founded 50 years ago by a dad whose child was diagnosed with schizophrenia. Discovering the lack of support available to families like his, he set out to create an organisation that would offer care, resources, and advocacy for those living with mental illness.
Today, the national charity supports thousands of people affected by mental health conditions, providing essential services across the UK, and partnering with organisations like Money Wellness to offer holistic care to those in need.
The United Nations (UN) hosts events and activities during the whole of October to promote the importance of mental health and wellbeing, so we thought it would be a good time to catch up with James Longford, mental health and money advice manager at Rethink Mental Illness, who looks after the benefits and debts side of the charity.
The link between mental health and money
James described how money worries can trigger or worsen mental health conditions, such as anxiety, depression and psychosis. And how regular contact from creditors asking for payment can heighten anxiety. Conversely, he explained that mental health challenges can lead to poor financial decisions, whether through impulsive spending or difficulty managing budgets.
"All of the clients that come to us, definitely in the benefits and debt sector, have some form of financial problem," said James. “Sometimes it’s mental health that can trigger the money problem, and sometimes it’s the money problem that can trigger the mental health.”
Teaming up to offer holistic support
Since partnering in 2023, Money Wellness and Rethink have been referring clients to each other.
If someone goes to Rethink for support with their mental health and they need debt advice, the charity will go through their finances with them. In cases where they think that person might benefit from a debt relief order, they refer to us. Similarly, if someone comes to us about their money worries and we think they'd also benefit from specialist support with their mental health, we refer them to Rethink.
This two-way referral system ensures people receive comprehensive support for both their money and mental health needs, as the two areas are so often intertwined.
Strengthening mental health support
As James explained:
“[Strategic partnerships like the one between Money Wellness and Rethink] definitely strengthen mental health support... It enables the organisations ... to offer a strong approach to supporting people with mental health.
“We all understand mental health has an impact on money, but it’s good to build those relationships with organisations like Money Wellness... to work together to share resources, [and] best practices.”
James went on to explain how his charity helps our customers. “When Money Wellness refers a customer to Rethink, the process involves completing an initial assessment with the client. That explores their circumstances, their mental health, and what support they’re getting. We also look at their housing situation and any physical ailments they need support with.”
The team also signposts people to other external services when necessary to make sure all aspects of their wellbeing are considered.
How Rethink can help
James shared a story of a woman who came to Rethink after escaping an abusive partner. Left with very little money and struggling with mental health issues, she was living in an unregulated caravan park with no heating or water. As a result of Rethink’s help, she:
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started claiming all the benefits she was entitled to
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was rehomed in a women’s refuge until permanent housing could be found
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had support from a social worker
“We removed her from that living condition to put her into a much safer place where she’s flourished, which has been quite positive,” said James.
Giving people the confidence to manage their own finances
Rethink also offers a self-help advice service that sets out the steps involved in applying for benefits and other forms of income maximisation. This not only builds financial resilience but also gives people a sense of control over their situation.
“We like to empower our clients to be able to help themselves and, in the future, make those decisions themselves,” James explained.
Breaking the stigma
One of the greatest challenges facing people with mental health issues is the stigma. Negative attitudes, prejudices, pre-judgments and behaviour can make it more difficult for individuals with mental illness to live a normal life. James says that although awareness is growing about mental health conditions, much more can be done.
“Mental health is very much out there in the public forum and I think stigmas are starting to break and change people's approach and thoughts about mental health. But I think there is more work we can do, especially to support those people who suffer from mental health [issues], because they may feel there is still a stigma… It’s looking at ways we can bring that to the front of people’s minds and start to change the stigmas.”
The partnership between Money Wellness and Rethink demonstrates how collaboration can create a stronger, more effective support system for individuals struggling with both mental health and money worries.
By offering a holistic approach, empowering people and breaking down the stigma around mental illness, such partnerships are creating a future where mental health care is more accessible, compassionate, and effective.
James said: “We’ve referred quite a lot of clients to Money Wellness... and we do get a lot of nice feedback from them, saying how much the help and support has enabled them to improve their life overall because they no longer have the stress from the harassment from creditors and they don’t need to worry about where they can find the money to pay their debts. They find that they are able to move forward.”
Gabrielle Pickard Whitehead
Gabrielle is an experienced journalist, who has been writing about personal finance and the economy for over 17 years. She specialises in social and economic equality, welfare and government policy, with a strong focus on helping readers stay informed about the most important issues affecting financial security.