Young people are three times more likely than older generations to have their mental health impacted by money worries

Research from Creditspring reveals that four in ten (39%) people aged 18-34 say their mental health has significantly worsened as a direct result of the cost of living crisis, compared to just 13% of over 55s.

This comes as recent research from the Resolution Foundation found that young people between 18 and 24 had the poorest mental health out of any age group and one in 20 in this age group were out of work due to ill health – making them more likely to not be working due to ill health than those in their early 40s. The research also found that a third of those aged 18-24 experience mental health disorders.

While 28% of young people say their mental health is worse than it has ever been because of financial concerns, just 8% of over 55s feel this way. Creditspring says it’s likely that this older generation have more savings to fall back on than the younger age bracket.

Other key findings:

•  20% of young people are reliant on credit to pay bills compared to 3% of over 55s.
• More than a third (34%) of 18-34 year olds admitting that they’re now in more debt than they were 12 months ago.
• A third of people aged 18-34 admit that being in debt is negatively impacting their mental health, three times the of over 55s (only 11% feel this way).
• Young people don’t see much hope for their mental health in the short-term, as a third (32%) say their mental health won’t improve as long as they remain in debt.
• For three in ten (31%) young people, their money worries have reached the point where they’re unable to sleep at night – compared to less than one in ten (9%) of over 55s.

 Neil Kadagathur, CEO and Co-Founder of Creditspring, said “Money worries and mental health are intrinsically linked – daily struggles to afford basic essentials, emptying savings pots and ever-growing debt are impacting the UK’s mental health with ever-growing numbers of people finding themselves in this heartbreaking situation.

“Older people who may have built a savings cushion to fall back on and likely have a higher household income likely aren’t facing the flood of money worries that the younger generation are struggling to overcome. Banks and other lenders need to ensure that they are offering more holistic support packages – especially to young people – which offer effective advice and tools for borrowers as well as a more collaborative approach combining financial support with expertise and resources from mental health professionals.”

 Talking to someone could help

If debt worries are damaging your mental health, you don’t have to manage alone. Customers tell us it feels like a weight’s been lifted off their shoulders after speaking to us, so why not get in touch and see how we can help.

You don’t have to suffer alone

If you’re currently in financial difficulty and struggling with your mental health, you’re not alone, and help is available.

The connection between money worries and mental health can feel confusing to navigate, but we’ve broken it down for you.

Mental Health charity Mind are accessible and will know how to help you get the professional support you need. And if you’re looking for local mental-health support, you can search for help in your area on the ReThink Mental Illness website.