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UK mental health charity Mind says that people with mental health problems are almost three times more likely to be in debt than those without them. New research has suggested that concerns about debt are having a significant negative effect on people’s personal wellbeing and that those with pre-existing mental health problems are almost three times as likely to be in debt, often due to an inability to work arising either from social stigma or ill health.

“There is an established correlation between mental health and debt - you could say they feed on each other,” explains Mind policy officer Sue Christoforou. “If you have a mental health problem, falling into problem debt will aggravate that. There’s increased anxiety, depression and a sense of powerlessness. Inevitably, there will be a rise in the number of people with mental health problems - or your financial situation might even create mental health problems . . . You might withdraw socially and not communicate with your creditors, which leads to debt collection that compounds your mental health problem.”

Having launched its Mind Week on Saturday 10th May 2008, the group has published the results of a study ‘In the red: debt and mental health’ which was conducted by the Royal College of Psychiatrists and looks at the relationship between mental health, debt and poverty.

It includes the results of an online and postal survey across England and Wales completed by 1,804 people. All respondents had experience of debt and mental health problems. It also includes qualitative data gathered at eight focus groups involving 56 people. 924 of the respondents reported problem debt (someone who has been 2 or more consecutive payments behind with a bill in the last 12 months). Previous studies have simply included reports on people with ‘debt’, Mind’s survey uses a more robust definition of ‘problem debt’.

The charity asserts that its study is the first to specifically examine the effect that financial concerns can have on mental well being. 91% of respondents felt that concerns about debt had worsened their mental health. A further 87 % noted that they had to rely on credit to cover the cost of basic purchases such as food and energy spending. As the credit crunch tightens its grip and the costs of living escalate, the charity asserts that 50 % have had to forego food and heating in an effort to reduce the constraints that today’s economic climate has put on people’s spending.

Other statistics released by the organisation found that of those with problem debt, 71 % ran out of money every week or most weeks, while 92 % of people said that they had been unable to socialise due to constraints on their spending. Over 50 per cent of the country was also reported to be living on a weekly household income of less than £200 pounds - a figure which the government has defined as the poverty line. 63% of people in debt did not tell the organization they owed money to about their mental health problems because they did not think they would understand.

Half of people in the survey had been contacted by bailiffs, some of whom issued threats saying they could “break in and take my stuff ” or “get me sent to prison.”

Mind’s chief executive Paul Farmer said: “UK personal debt stands at a staggering 1.4 trillion pounds but the real cost here is that on our mental health. Money worries aren’t just keeping people awake at night; they are causing high levels of stress, depression and in some cases self harm and suicidal thoughts.”

“Those on lower incomes are also more likely to only be able to get credit from lenders who charge astronomical interest rates. ”

“This is a worrying trend as people are left facing a debt mountain that they have no means to repay.”

The charity is launching a section on its website to help people with financial problems.

As a result of the findings Mind is arguing for more access to “talking therapies” It’s recommendations include allowing customers with mental health problems to be able to ask banks to monitor their current accounts for unusual spending patterns and to be more sympathetic to missed payments; for mental health awareness training for staff in the banking and debt industry; for advisers on debt to work from doctors office; and a guide to money management for people with mental health problems to be distributed by doctors, hospitals and charities. It also wants an inquiry into how debt collectors deal with mentally-ill people.

Responding to a Mind recommendation that community psychiatric nurses, social workers and doctors should receive training to support people with mental health problems in debt, a Department of Health spokeswoman said: “It is not practical to expect professional staff to know about all the issues and the law covering debt management. Apart from the fact that this is not why they came into the service, knowledge of debt management is highly complex and there are various outside experts, who keep up to date with any changes in law and practice, who are better placed and fully qualified to deal with this issue. Referral to these agencies can easily be made as appropriate.”

One woman who has spoken to Mind went into debt after she was unable to work due to a breakdown.
She said: “I felt so frightened and could see no way out, so my response was to ignore everything and everyone. Credit card and bank charges increased month after month and I became stuck in a spiral of poverty.”

Although she informed her bank and credit card companies that she was depressed, she says they were unsympathetic and inflexible about repayments.

A spokesman from the British Bankers’ Association, a trade association for the banking and financial services industry, said help was available. “All lenders recognise that individuals’ personal circumstances may affect their ability to borrow and to repay that borrowing.” Basically that’s the corporate line and they are not being honest about the banks actual response to people with mental issues and debt.

“The banking code sets out a series of commitments to people facing financial difficulties, including being sympathetic and positive in their consideration of financial difficulties and proactively identifying and contacting individuals who may be at risk.”

“Banks will have staff who are specifically able to help with mental health issues, and we try to help people before they get into really difficult situations. ”

“However, bank staff are not health practitioners and cannot diagnose mental health problems or assess the likely impact these problems may cause their customers.”

She added: “Customers who no longer have the ability to look after their own affairs have their banking needs looked after for them, but less serious health issues can be a silent problem - unless the customer wishes to let their bank know.”

“Then the bank can flag accounts and will be able to factor this into any debt help required.”

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