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Blogging for Change Blogging For Change
by Jesse Campbell on May 03, 2016

Woman sitting in the dark, depressed due to her personal finances 

May is Mental Health Awareness Month. It’s estimated that between 20 to 25 percent of all Americans suffer from some form of mental illness.

The origins of mental illness are varied and complex. There are a nearly limitless number of reasons why mental illness happens, from biological causes to environmental influences.

One contributing factor that has the potential to impact nearly everyone at some point in their life is personal finance. Researchers have repeatedly found a clear link between mental and financial health.

In many instances, that link is cyclical – poor financial health leads to poor mental health, which leads to increasingly poor financial health, and so on. But researchers have also concluded that mental health issues – including depression, anxiety, and certain forms of psychosis – are three times more likely to occur when an individual is in debt.

Additionally, a recent data analysis by personal loan company Payoff found that 23 percent of respondents to a financial health survey reported experiencing symptoms of post-traumatic stress disorder (PTSD) due to their personal finances. These respondents admitted to irrational or self-destructive behavior motivated primarily by a desire to avoid the reality of their financial problems.

The implication here is not simply that poor financial health may lead to poor mental health. Much more important is the logical inverse: that taking active steps to ensure our financial health is very likely to pay positive dividends on our mental health as well.

Common signs of depression

Are your personal finances having a negative impact on your mental health? That may not be immediately clear.

Per the National Institute of Mental Health (NIMH), these are the most common symptoms of depression:

  • Persistent sad, anxious, or "empty" mood
  • Feelings of hopelessness, pessimism
  • Feelings of guilt, worthlessness, helplessness
  • Loss of interest or pleasure in hobbies and activities
  • Decreased energy, fatigue, being "slowed down"
  • Difficulty concentrating, remembering, making decisions
  • Difficulty sleeping, early-morning awakening, or oversleeping
  • Appetite and/or weight changes
  • Thoughts of death or suicide; suicide attempts
  • Restlessness, irritability
  • Persistent physical symptoms

Regardless of whether or not your particular symptoms are rooted in financial distress, if any of this sounds like you, it’s important that you speak with as qualified mental health professional.

Rebuilding your foundation

If your finances are causing you mental distress, a good first step is actually a step backwards.

“Take the time to clearly define your financial goals and understand your values, both as an individual and as a family,” suggests Maura Attardi, MMI Director of Education. “Defined goals help us understand if our spending habits are pushing us in the right direction, while our values help us determine if our goals are realistic and meaningful. Also, there may be conflicting values within a relationship or family, which can cause a lot of stress. Getting everything in alignment relieves stress, reduces interpersonal friction, and makes financial decision-making much easier.”

Once you’ve reached consensus on your financial priorities, you can begin to address the specific causes of your mental distress.

“Taking an honest and open look at why we spend money the way we do can also be helpful in alleviating stress and determining the steps we need to take,” says Attardi. “If the issue is overspending, try to determine what inner voids you’re trying to satisfy through spending money, and then replace your expensive coping techniques with something that might be easier on your pocketbook, like free yoga classes, reading, or exercising.

“In addition, finding someone that you can be completely honest and open with about your financial situation can help. Where we may only be able to see the bleakest possible financial future, a credit counselor, a friend, or an objective family member can help open our eyes to some of the positive options we have available.”

If you need help finding a positive financial path, consider speaking with one of our certified credit counselors. Debt and budget counseling is always free and can go a long way toward alleviating your financial stress.

Mental illness is very common and no one should ever feel ashamed or embarrassed to admit that they need help. Once again, if you or someone you know is dealing with symptoms of depression, anxiety, or any other mental illness, please seek assistance from a qualified mental health professional in your area. For helpful mental health resources, visit (a division of the U.S. Department of Health & Human Services) and (The National Alliance on Mental Illness).

Posted in:  Debt Repayment, Family


Cathy says:
May 05, 2016

This article was very, very helpful!! Thank you! I better understand where my anxiety and depression is coming from.

Anonymous says:
May 05, 2016

This article is so true, the stress affects me physical and mental health greatly. It is very depressing day for me when I can't even pay my rent.

Anonymous says:
May 06, 2016

Good grief! I don't see any consideration of the fact that sometimes mental health issues force one into debt. I promise you that my therapy appointments and medication do account for a big part of my spending, and i most certainly will pay for such essentials as medical care,therapy, medication, rent, utilities and food first. Medical debt is the most frequent cause for people falling behind on money issues. I know that creditors harrassing me when i'm stretched to the limit virtually ensures my medical costs will increase and i'll have less money to apply to creditors...

Eme says:
May 05, 2016

Using MMI to consolidate and pay off my debt has given me peace of mind. I am on my last year finally and I don't want to see a credit card ever. I go to the library and take out books, go to classes and try to keep busy. Depression meds cost a lot at least mine did even with insurance and I had to charge it, sadly. I had tried so many others over the years and of course the one medicine that worked well, was very expensive. I wish the pharmaceutical companies would offer huge discounts as I did try and of course mine was not on their list for a discount. But I feel relief now from knowing in less than 12 months, I will be free of this monthly payment. The people here at MMI were really nice to speak with. I highly recommend using them.

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