If you’re struggling to make even the minimum repayments on debt, it can take a toll on your mental health. This can spill over into other areas of your life and make the situation even worse. For example, if your performance at work suffers, you may have the additional worry of losing your job. There are, however, ways to cope. Here are some tips to help.
Evaluate your financial situation
Just getting a clear overview of your financial situation can help you to feel better about it. If nothing else, it puts you back in the driving seat. Finding a path forward may not be easy. Navigating it may be even harder. At the very least, however, you will have a starting point.
You need to know your overall debt, how it breaks down, how much you owe and how much your monthly repayments are. If these change over time, then just put down the current figure. You then need to list your other outgoings alongside your income. If your income comes from different sources, then split these out.
This will give you a clear picture of your overall financial situation. In particular, it will answer the question of whether or not you are currently solvent. Solvent means that you can afford to make the minimum payment on your debts and still pay your essential bills.
If you see that you’re insolvent, you don’t have to jump into insolvency proceedings. You might be surprised how many options are open to you. You do, however, need to see a debt advisor as quickly as possible. If you are solvent, then you need to decide if you feel capable of tackling your debt alone (with help from family, friends and the internet). If you don’t, then again, you need to make it a priority to see a debt advisor.
Assess your mental health
Now that you know where you stand financially, take some time to assess your feelings about it. Then think about your mental health in general. Debt isn’t necessarily the cause of mental-health issues, although it can be. It can also be an aggravating factor for issues with other causes.
Ask yourself honestly if you are really comfortable dealing with your debt without professional mental-health support. If you feel that you are, make a point of keeping track of your mental health. If you find it deteriorating, then you should probably take it as a sign that you should get professional help after all.
If you realise that you aren’t comfortable dealing with your debt without professional mental-health support, then you should make it a priority to reach out to your GP. GPs are usually your first point of contact for any health issues (mental and physical). If they are unable to help themselves, they will arrange an onward referral for you.
Use the Debt Respite Scheme if you need it
The Debt Respite Scheme is more commonly known as the Breathing Space scheme. It comes in two forms, general (more properly known as moratorium) and mental health. The exact details of each scheme are different. The basic principle is, however, the same.
You will essentially be placed into a protected state to give you breathing space to work on your debt issues. During this period, you will have assistance from a debt advisor. By the time it comes to an end, you should have a path forward. This path may be insolvency. It is, however, more likely to be a debt-management plan.
Be prepared to communicate with those around you
You don’t have to share everything with everyone but you don’t have to suffer in silence either. Think about who needs to know about your situation. Then decide how much they need to know and whether or not you want to share anything else with them. You’ll probably find that those around you will be a great source of emotional support. If, however, you do have issues with certain people, then feel free to move
