2020-03-05

PsychiAtry About Money


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People with mental health problems are more likely to get into financial difficulties, and people with financial problems are more likely to develop symptoms of mental illness than those without money worries. The Money and Mental Health Policy Institute,
London, UK, established in 2016, is the first charity dedicated to understanding the link between personal finances and mental health, and to developing pragmatic solutions by investigating how financial and health services can work together.

People with mental health problems are more likely than others to encounter financial difficulties for several reasons. Money and Mental Health's online questionnaire, Money on your mind, collected data from over 5000 people with lived experience of mental illness. It identified some frequently occurring themes in the pathways between financial difficulties and mental health problems. These included loss of income from unemployment or going through a relationship breakdown, and difficulties with keeping on top of money management, such as opening post and paying bills. Examples of where symptoms of a particular illness make financial planning and management more difficult are increased spending in manic episodes of bipolar disorder, and comfort shopping in depression.

* Money and Mental Health is the new Policy Institute set up by Martin Lewis to tackle the toxic relationship between financial difficulties and mental health problems.

Today Money and Mental Health launch their flagship report Money on your mind. This is the largest study of its kind, drawing on the experiences of nearly five and a half thousand people with mental health problems. The findings are stark.

72% of those surveyed said that their mental health problems have made their financial situation worse, and that’s not just as a result of having less money to spend.
93% say they spend more when they are unwell
92% find it harder to make financial decisions
and worryingly 59% have even taken out a loan that they wouldn’t otherwise have done.
Of those who have taken out new credit in the last year, more than a third (38%) said that their mental health at the time left them unable to remember what they had been told about the loan.

Previous research has shown that one in four people with a mental health problem is in problem debt, while half of those in debt also have a mental health problem.
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