I'm struggling with money management
If you are experiencing issues with finances such as benefits, debt, or everyday money management, read on for information, advice, and where to find support.
What is financial stress?
If you are worried about money, it can feel overwhelming, and you might not know where to start. Keeping up with the rent and the bills can feel impossible; you may have taken out a loan to try and resolve the issue, but now you are struggling with the interest fees. You might owe money or find it hard to control spending urges. In severe cases, you might not know where your next meal is coming from.
Money worries can impact on your overall health, and on your sleep, mood, and relationships. But usually the situation can be improved by taking some small steps and asking for help.
How did I get into this situation?
Money troubles can affect anyone, at any time of their life. There are many reasons that we may find ourselves struggling with managing our finances, and everyone responds to stress in different ways.
We all need to eat, and have a safe place to live and sleep in, and these cost money.
Another reason you may experience financial stress is if your money is being controlled by someone else, such as a partner or family member. You may also be struggling with debts that have been created by someone else, but they have taken out in your name.
If you feel that someone else is controlling you or your money, this is a form of domestic abuse. You can find further information and support here.
A person can be affected by financial stress due to:
- Trying to cope with everyday expenses (e.g. rent and food) on a very small income
- Unexpectedly having to pay a large sum, leading to taking out a loan to cover it
- Experiencing a financial emergency such as job loss, furlough, or change in benefit income (e.g. due to the Coronavirus pandemic)
- Underestimating the cost of borrowing money, resulting in struggling to pay interest to the lender
- Experiencing pressure from others to spend money and live up to expectations (e.g. if you have been living a lifestyle beyond your income)
- Feeling out of control of your spending behaviours due to an addiction, such as to gambling, shopping, alcohol, or drugs
- Not having experience of managing your budget before, but now needing to learn how to do this
These are just some examples of how we can be impacted by money worries, and it's OK to be struggling with this. You can contact The Money Advice Service for free, confidential support by calling 0800 138 7777, or you can message them via WhatsApp or through webchat.
For further information and advice about money management and mental health, Money Saving Expert has created a booklet that you can download here.
How are my money worries affecting me?
Financial stress affects everyone in different ways, and some of us will be impacted more strongly than others. Read on to learn more about how financial stress may be affecting you and to hear from others and their own experiences with money worries.
Is financial stress affecting my life?
It’s common to experience feelings such as stress, anxiety, anger, or low mood when we have concerns about money. While some money worries may ease over time, prolonged financial stress can have an impact on our mental health.
Consider the statements opposite and tick any that apply to you.
Acknowledging that we are struggling with money can be difficult, but just reading this is the first step towards developing money management skills and reducing your stress. Scroll down for some steps you can take to help you with this.
Gambling and financial stress
There are many reasons that we may experience issues around money management, and a common reason is as a result of gambling. While taking part in gambling doesn’t always become a problem, some of us may develop an addiction and this can lead to significant debts.
If you are experiencing financial stress as a result of gambling, you may want to consider seeking further support. A wide range of banks allow you to set up a ‘gambling block’ to restrict gambling transactions, and you find a list of which banks offer this here.
It can feel scary to talk about addiction, but reaching out for support can help you to take control of the issues you are struggling with and make changes. You could speak to someone you trust, such as a friend or colleague, or your GP can suggest services that may be helpful for you.
Here are some services offering gambling support:
Free information, advice, and support for anyone impacted by gambling
Free counselling and support for people in Sussex affected by gambling
Free, confidential help and support for anyone worried about their own (or someone else’s) gambling
Connect with others who have experienced issues around gambling and build a support network in your local area
National Problem Gambling Clinic
Offering a range of treatment and therapies for people in England and Wales (aged 16+) who are experiencing issues with gambling
How can I manage my money worries?
Many of us will face problems with money at some point in our lives, so you are not alone. Scroll down for some examples of how you can help yourself, as well as where to find further support.
Step 1 - Organise your finances
The first step to taking control of your money management is understanding your current situation. Set some time aside to gather any letters or statements, and make a record of what money is coming in and going out (e.g. on your phone or on paper).
If you haven’t already done so, it may be helpful to register for Online Banking (your bank can help you do this if you are unsure) as this will ensure that your records are stored safely. It can also be helpful to set up Direct Debits for bills to avoid falling behind on making payments.
This can be a stressful task, especially if you have been avoiding correspondence such as emails or letters. Schedule regular breaks, pace yourself, and perhaps have a set start and finish time for when you work on your money management plan. Remember: it’s OK if this takes time, and it’s important to go at your own pace.
Once you know your income and outgoings, this will help you gain a clearer perspective of what the problem is and how you could address this. If you think you might need help with this, you could ask a friend or family member to support you, or seek advice from a professional.
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Step 2 - Speak to a debt advisor
It can be difficult to open up to others when we are experiencing money problems, however having professional advice and support helps us to make better progress towards managing our money more effectively.
Speaking to a debt advisor will allow you to talk about the problems you are facing, without being judged or made to feel bad about your situation. They can advise you about how to manage debts, and provide information about options you may not know about.
When you speak to a debt advisor, it can be helpful to:
- Make a note of what you want to ask
- Have all relevant paperwork with you
- Write down what has been talked about
- Make sure you understand what you’ve been told and what the next steps are. You can ask them to clarify if anything they have said is unclear
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If you are feeling anxious, you may want to have someone you trust with you, such as a partner or friend. Remember: it’s OK to experience money worries, and there are people who can help you.
You can find more information about where to find a debt advisor (in person, online, or over the phone) on the Money Advice Service website.
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Step 3 - Seek mental health support
Money problems and mental health can have a direct impact on each other; for example, a person experiencing mental health issues may find it harder to manage their finances, then worrying about their money problems can make their mental health worse, and so on.
It can be helpful to notice your mood and behaviour patterns in relation to money. For example, how do you usually feel when you are spending money, compared to when you are saving? Are there particular aspects of money management (e.g. opening bills) that make you feel stressed or overwhelmed?
Try keeping a diary of your spending habits and how you were feeling before, during, and after, as this can help identify habits you may have developed or potential triggers that are making your mental health worse.
If you feel that your money worries are impacting your mood, sleep, relationships, or any existing mental health conditions, you may want to consider speaking to your GP or seeking further support. You can find services in your local area offering support here.
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Step 4 - Make a realistic plan
Depending on your current situation, you may be entitled to additional financial support. Organising your finances and seeking support from a debt advisor can make it easier to understand what benefits you may be able to claim, and how to use these effectively.
There are a number of online tools that can help you calculate what you may be entitled to:
Turn2Us Benefits Calculator – helps to calculate means-tested benefits (based on your income, savings, and other capital) and carers allowance
entitledto Individual Benefits Calculator – receive a free estimate of your entitlement to benefits, tax credits, and Universal Credit
Policy in Practice Benefits and Budgeting Calculator – find out what support you may be eligible for depending on your current situation
If you are in an emergency situation with no money to buy essentials such as food or fuel, you can get help from a local foodbank, through a number of government-run schemes, or you may be able to apply for a Welfare Assistance Scheme through your local council. You can find more information about what to do if you need emergency help with money here.
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Get Help
If you feel that your money worries are affecting your day-to-day life, it may be time to get some help. StepChange or the Money Advice Service are a good place to start, or you can find mental health support services in your local area here.
