Debt and Mental Health - How have your debts affected you?

phillw · 22 February 2019 at 2:55AM

Anno88 wrote: »

This is an aspect of Mental Health that can affect finances - an extreme fear of poverty, usually caused by traumatic experiences in childhood / adolescence, that causes the individual to maintain excessive control of their spending,and to have a ''poverty mindset' even when they have no debt, considerable savings, and a healthy income.

Has anyone else had any experience of this situation?

Yes, my goal went from clearing debts to saving to do things to the house that I put off because I was clearing debts. I don't know if I'll reach a point where I don't worry.

Esbdoris wrote: »

I am now in my 60's and been 'yo yo' debting for years and the stupidity of it all is I am now realising the affect it has had on my life and my family.

Hind sight is cruel. You are not alone, loads of people have done the same thing http://debtorsanonymous.org.uk/

snowycatgirl · 22 February 2019 at 7:57PM

I've lurked on here for years but have only recently joined.

I've been in the mental health debt spiral many years back as someone who is diagnosed with Bipolar I. My first manic phase lasted three weeks and then I was sectioned but my spending had already took on a whole new route. I managed to spend £15,000 on credit in a week, also I blew what savings I had. I ended up being sectioned on a section 3 for six months. It was truly scary.

My only way out was bankruptcy, I was just 20 years old when I declared myself bankrupt with debts of £16,678!

I'm almost 35 and financially stable although it took a long time to get here. Sadly I was made redundant last year and have taken on a job that pays a lot less until something better comes along but I'm determined not to rely on credit to get me by!

There have been times when during manic episodes I have fallen off the wagon spending wise but I've been supported with friends and family and they have stepped in rather quickly.

I'm hoping in 2020 to finally get myself on the housing ladder.

14 years ago I really never imagined I would be where I am today.

a_silver_lining · 24 February 2019 at 9:43PM

Anno88 wrote: »

This is an aspect of Mental Health that can affect finances - an extreme fear of poverty, usually caused by traumatic experiences in childhood / adolescence, that causes the individual to maintain excessive control of their spending,and to have a ''poverty mindset' even when they have no debt, considerable savings, and a healthy income.

Has anyone else had any experience of this situation?

Yes this is 100% me. I left home as a teenager following family difficulties. I paid rent the moment I moved out, chose to work and not go to university to support myself (although in retrospect could have), paid rent when staying briefly at a parents house.

It caused me to be an avid saver. I saved 45k to buy at 27.

Alongside this I suffered with anxiety, depression and some periods of psychosis. My fixation on working and supporting myself was a weight on my shoulders. Buying didn't help me relax very much, although I briefly relaxed financially.

I've had big blow outs of savings between stringent saving.

I'm currently paying back a family member the 10k they lent me towards buying. I want to then buy a home with my partner, somewhere I can live 'forever', it's a bit of a fixation. I crave stability, and so saving becomes a thing more about control then celebration.

Plonter · 13 March 2019 at 2:07PM

I so much agree with that mental issues specially caused by some sort on childhood.

Snurt65 · 23 March 2019 at 10:12PM

Hi My husband of 25 years has recently been diagnosed as being bipolar ( only a surprise to him!) after a manic episode. During his diagnosis and treatment I found out that he has racked up debts of over £80000 (gambling and compulsive buying). We have just negotiated a remortgage ( we had very little and only 5 years left on our original and his earnings put him the higher tax bracket) and are going to pay off all the cards. I appreciate that he spent the money and we are able to earn the money to pay it off but is it worth us negotiating with the banks when paying them off. For example he has 3 with Barclaycard - do we offer them a lower amount to have them all paid off or will that affect his already poor credit rating. He is now on treatment so his compulsive spending and gambling has stopped.

vd_ · 26 March 2019 at 3:22AM

OK so here goes. Not sure if this thread is active but I need to get this off my chest.

I grew up always worried about money (parents and I’ve always been a worrier). When I got to uni I didn’t apply for a student loan for 2 years - I was entitled but the paperwork was too overwhelming at the time (was suffering from bad depression and anxiety.)

Now I am 23, have been forced to suspend my studies, and am over 20k in debt. SLC has rejected my application despite evidence of my illness. University were callous, student fees office even more so.

I get nausea everytime I get a call or post. The shame of this
Situation is so bad I have only told two people. Today I got a phone call I’m assuming from debt collection and haven’t been able to stop crying. I still am not able to listen to my voicemail.

It’s comforting/sad to come across a thread and see I’m not alone in finding it so hard to deal with my finances. This is such a lonely situation to be in.

My plan of action is to call CAP maybe, ask any kind of charities to help me out because even if I work for 2 years I will not earn enough and 2 years is the maximum time for suspended studies for my course.

What a crummy situation. If anyone is able to offer me any support/advice please do. Love and solidarity with all of you.

jjhdee · 5 April 2019 at 6:00AM

Oh definitely. Not to mention so much regret... on spending more than wisely saving or investing, being unwilling to learn from others' mistakes. That really takes a toll.

jeandenham66 · 12 April 2019 at 1:36AM

Unfortunately I was debt ridden at one point a few years ago, we had some medical bills to pay and we took the load on the credit card from Sainsbury's. After 24 months of the 0% interest we kept rolling it over onto other cards. I worked extra hours, weekends mainly to make up some more pay and evenually paid it down.

I am aware that some people do not possess the mental fortitude to go through this kind of stress - fear not, if you are stressed out by debt, it is only normal.

My advice is to always pay off your credit cards in full each month, this way you are deemed more trustworthy by the banks/lenders.

The key is to build credit score and keep it in good standing, so if an emergency does arise in future, you can get access to the better rates.

Hope this help, first post here, been lurking for years!

Best
Jean x

jjhdee · 15 April 2019 at 5:12AM

jeandenham66 wrote: »

My advice is to always pay off your credit cards in full each month, this way you are deemed more trustworthy by the banks/lenders.

This has been my mistake early on, and thinking that my credit card is an extension of my money instead of a loan.

3011gillian · 17 April 2019 at 8:15PM

Struggling a lot at the moment. After years of bad decisions (i was brought up in a very poor family so having a full time job and my own income felt great!), plus redundancies/maternity leave and a lack of options for flexible working resulting in a massive income drop. We found ourselves in a dmp. We’ve paid about half off but recently begun the CCA process which I’m not feeling the benefit of yet, I find it stressful not hearing from creditors and find myself waiting for the postman each day.
Hubby was yet again made redundant (well jumped ship when salaries weren’t paid at Xmas) and although he got a new job he’s really not enjoying it and it doesn’t fit very well with childcare/work life balance and his overall happiness.
We’re talking about him finding a new job, me finding a new job (to help financially) or giving up one of my current jobs (to ease the childcare issue), plus this constant pressure to save for a house-were almost 40 so the figure are getting worse for mortgages and working until we drop.
It’s all a bit much to think about in one go!

Debt and Mental Health - How have your debts affected you?

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