Finances Affecting Mental Health

A piggy bank resting on top of a wide array of coins
Author: Samuel Beckingham
Updated: Apr 03, 2024
3 minutes read

HSBC UK conducted research to discover the impact finances are having on people’s wellbeing. Censuswide surveyed 2,000 people across the UK last month to tie into Debt Awareness Week, and 33% feel their current financial situation is having a negative impact on their mental wellbeing.

Emotional States

Money troubles are a huge cause for concern. They stick in the mind and can present many sleepless nights. In fact, 31% of people said their finances are negatively impacting their emotional wellbeing.

The truth of the matter is, you’re not alone. There are many ways you can receive financial help, from free online talks to useful saving tips. First and foremost, you should speak to your bank and see what help that can offer you.

“Reaching out to your bank is a good place to start – from free ‘always on’ webinars to one-to-one financial health checks for customers and non-customers alike – we are here to help.”

Madhu Kejriwal – Head of Unsecured Lending at HSBC UK

Additional Borrowing

When you’ve already borrowed money, it can sometimes be unavoidable to take out another loan. You could be suffering from unaffordable lending if this is the case.

According to the survey, 24% of people who have taken out non-mortgage credit said the main reason for this loan was to cover everyday expenses.

Sometimes this can come as a surprise. 19% said an unexpected expense drove them to borrow money.

With loans, it’s incredibly important to understand how much they will cost you in total. Just over half (51%) of borrowers said they know the interest rates on their current debts.

Debt management can often be a lifesaver for severely struggling households. In total, 11% combined their debts into one place to make them more manageable. Consolidating debts can make things easier, but it can also make the repayment terms much longer.

However, despite the cost of living crisis, 60% of people are confident about their financial resilience and their ability to handle unexpected costs in the next year. Now that energy costs have gone down and inflation isn’t as high, there’s a lot more confidence in money handling from consumers.

Financial Goals

It can sometimes help to have something to work towards. With a clear and realistic goal in mind, you’re much more likely to hit it. In terms of finances, this could be anything from saving up enough money for a purchase or to simply pay off debts.

In the survey, 52% said they’re confident they can achieve their financial goals in the next 12 months. These financial goals included:

  • Clearing debt

  • Saving for a big purchase (not a house)

  • Early retirement

  • Becoming mortgage-free

  • Saving for a house

Help Your Finances

Whether you’re confident in your finances at the moment or need a helping hand, we can help you get money back.

Unaffordable Lending

Credit limits can sometimes be increased without your knowledge or consent. This is sometimes a tactic to get you to spend more money, potentially putting you in a worse situation. This can happen with online retailer Very, for example.

You are able to make a claim for unaffordable lending for a number of different reasons, such as not having proper affordability checks conducted beforehand.

Check your eligibility by clicking on the button below.

Mis-sold PCP

Personal contract purchase (PCP) is very much in the headlines this year on account of the FCA investigation into widespread mis-selling. Did you know that there’s many reasons that you could qualify for a claim?

You should know that PCP claims can be made if you weren’t given a full range of options for your vehicle. The advice could have been poor or negligent, or you weren’t given a proper affordability check.

Click on the button below to check your eligibility.

Flight Delay

Airlines have the power to prevent delays that are in their control. Anything over 3 hours entitles you to compensation. Depending on the distance of your flight, this can entitle you to £520!

You can use a flight delay compensation calculator to find out how much you’d qualify for. Alternatively, find your flight by clicking on the button below.