My six tips if you’re struggling with your finances and mental health – from cash grants to tackling debts
When it comes to money and mental health, it can be a vicious cycle.
A recent survey by Mind revealed that the cost of living crisis has negatively impacted the mental health of four in five people in the UK.
On top of this, according to Mental Health & Money Advice, poor mental health can make it even more challenging to earn and manage money – exacerbating the problem further.
Thankfully, there are simple steps you can take to stop the money and mental health cycle in its tracks.
Liz Hunter, director at comparison site Money Expert, shares her tips to regain control of your financial worries before they become overwhelming - as well as the steps to take if money is already taking a toll on your wellbeing.
If you’re struggling with debt or are unable to pay bills due to the increasing cost of living, you might be feeling worried, anxious or depressed.
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But with 78% of people in the UK claiming their mental health has suffered during the cost of living crisis, know that you’re not alone.
The first step to feeling better is to share your concerns with family and friends. They may be able to offer both emotional and practical support by helping you to reorganise your finances.
There’s also plenty of free, professional and confidential support available to you. is a great place to start.
They’ll be able to discuss how to best deal with debt, any benefits or grants you're entitled to and who to speak to if you're at risk of losing your home.
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It’s also worth speaking to your bank or creditor directly, who’ll be able to support you with money management advice.
In some cases, they may be able to freeze your payments or help you to set up a repayment plan.
Lastly, if you’re struggling to make payments for your monthly utility bills, give your provider a call.
They may be able to help you find a cheaper tariff, put you on a more manageable payment plan and advise you on available grants to help you towards the costs.
You can also contact the following trusted organisations for free:
- : 0800 011 3797
- : 0808 808 4000
- : 0800 138 1111
Consolidate your debts
Having debts spread over loans, credit cards and overdrafts can be stressful and hard to manage.
But consolidating your debts allows you to combine your debts into a single loan with a lower interest rate.
As well as reducing your debt, it could help to reduce stress and improve your mental health, as you’ll only need to keep up with one payment.
There are two key ways to consolidate your debt:
A fixed-rate debt consolidation loan
You’ll take out a new loan with a lower interest rate, then use the money from the loan to pay off all your other debts.
You should always seek expert advice before consolidating debt, as it’s not always the right path for everyone.
is a great place to go for free, impartial advice on whether you should choose a debt consolidation loan.
A 0% interest balance-transfer credit card
You’ll transfer all your debts onto one card with a 0% interest period – usually between 12 and 24 months – during which you pay no interest.
The interest rate can rocket after the 0% period ends, so it’s best to aim to pay it off beforehand or transfer the remaining balance to another 0% card.
For example, let’s say you had a remaining balance of £1,000 on your card and your APR rate jumped up to 20% once your 0% period had ended.
If you repaid £50 each month, you’d pay around £200 in interest on top of the remaining balance.
By transferring the remaining balance to another 0% balance transfer card, you’d save that £200 (depending on transfer fees set by the credit card company).
Beware being tempted to spend on the new card and getting in to more debt, or using it to withdraw cash which often comes with high rates of interest.
Plus, always pay off at least the minimum each month to avoid falling behind.
Read more about how to find the best 0% credit card deal, and the risks to avoid falling further into debt.
Again, speaking to a debt adviser for free can help you understand if this route is suitable for you.
Research shows that 50% of adults who are struggling with debt also have a mental health issue
So if you do need to borrow, doing so in the most affordable way will reduce the potential impact on your wellbeing.
Avoid payday loans at all costs and never turn to loan sharks - there are always alternatives whatever your situation.
We've rounded up the cheapest ways to get interest-free or cheap loans.
Spend a day cutting your bills
Setting aside some time to go through your electricity, broadband and insurance bills could potentially save you thousands per year - and significantly reduce the monthly burden on your mental health.
Car insurance
When looking for car insurance, it pays to do your research and shop around.
Renew two to three weeks before your current contract comes to an end.
Insurers will ask for a start date for your insurance when you’re conducting your search, and if you need cover urgently, you might be quoted a higher premium.
When you start your search, use a comparison site.
As well as saving you time, research shows that it could potentially save you over £330 per year.
During your search, you’ll find that opting for a higher voluntary score results in lower insurance premiums, but be careful not to set the excess so high that it becomes unaffordable for you to make a claim.
Lastly, if you can, it’s worth paying upfront rather than monthly.
Paying monthly means opting into a credit agreement, which could mean paying much as 40% interest on top of the annual premium.
Broadband
Broadband providers attract your custom with cheap promo deals and super-fast download speeds.
However, once your contract comes to an end, the monthly cost is likely to increase.
For example, once you’re out of a contract with BT, they’ll add £8 to the price of your monthly bill if you don’t sign up for a new package.
That means shopping around for a new tariff would save you £96 per year – and that’s before you’ve looked at the latest deals on the market.
Before you shop around, consider your needs and how you’ll use the internet on a daily basis. If you work from home, use devices for entertainment (think gaming, streaming films or listening to music) or have multiple devices in use at the same time, it’s worth considering faster speeds.
But if you’re a casual internet user without a multitude of devices connected in your home, a standard speed broadband tariff will probably suit you just fine.
This way, you could save as much as £150 over the course of the contract.
Read our guide on beating broadband and and mobile price hikes.
Mobile phone contracts
If your phone contract ends and you don't do anything, you won’t be cut off.
However, you’ll typically end up paying the same price for the same allowances.
So, if your contract included a phone, you’ll still be paying for the phone even though you’ve already paid it off.
If your phone is still in good condition, consider keeping it and opting for a SIM-only plan. This could save you upwards of £500 a year.
SIM-only plans are often on a rolling month-to-month contract, meaning you can easily switch to a deal that includes a handset when you feel you need one.
If you need a new phone immediately, shop around, but do bear in mind that your current provider will be keen to keep you on board.
This makes it a great time to phone them up and haggle for an even better deal.
Council Tax
Lastly, it’s worth double-checking your Council Tax.
Many people are in the wrong band and overpaying by hundreds of pounds every year.
It takes a few minutes to check your band on the .
Though beware, you can be moved into a higher-paying band too, so check carefully before challenging it.
Check out our guide on how to go about it.
If you’re on a low income, live alone, are a student or claim benefits, you might be eligible for a discount on your council tax.
You can check the full list of discounts that are available .
Council Tax is a priority bill, which means it has the most severe consequences if you fall behind.
If you miss even one payment, you could be asked to pay the outstanding balance all at once.
Not paying it can result in court action or even imprisonment and local authorities also have the power to send bailiffs to your home.
This means it's really important to seek advice as soon as possible, if you know you're unable to pay your bill.
Apply for grants and benefits
If you’re struggling to pay your bills – even if you work and/or own your own home – you may be eligible for grants and benefits.
This could include:
Cost of Living Payment
If you get Universal Credit or certain other benefits, or are over State Pension age and get Winter Fuel Payments, you may be eligible for up to five cost of living payments.
Welfare Assistance or Household Support Fund
This is run by local councils, who each run their own scheme. You don’t necessarily need to be receiving benefits.
We explain how it works and how to apply where you are here.
Charitable grants
Some charities are offering support to help with living costs.
Some are open to everyone, while others are based on your personal situation, such as your age or whether you have a health condition.
Head to for a full list of support that could potentially be available to you.
Consider switching your bank account
Switching your account might seem like a hassle, but the seven-day current account switch service means it’s fairly effortless these days.
Plus, with banks offering everything from interest-free overdrafts to cash rewards – currently up to £200 with Natwest, RBS, HSBC and TSB – it could be a good way to improve your financial situation.
The first thing you’ll need to do is shop around and compare the various deals and benefits offered by different banks.
It’s important to spend time weighing up what you’ll benefit from the most, both financially and mentally.
Avoid switching accounts solely off short-term perks. Some banks offer better savings rates, as well as lower interest rates on their mortgages, if you have a current account with them.
Long–term, this could put you in a better place financially than a short-term cash boost.
Make sure to take interest rates, overdraft charges and account fees into consideration, too.
Start saving, no matter how small
Saving money each month can have a huge impact on your mental health.
As well as gaining a sense of accomplishment, you’ll reduce stress and anxiety by building up your financial safety net.
Round-ups
One of the easiest ways to get started is to turn on round-ups within your banking app.
Every time you spend on your account, your bank will round up your purchase to the nearest pound and add it to a savings pot.
According to Monzo, this could help you to save an extra £129 per year.
The 1p saving challenge
You start by saving 1p on the very first day, then add an extra 1p every day e.g. day 1 = 1p, day 2 = 2p, day 365 = £3.65.
It’s a great way to ease into saving money and stay accountable. Plus, within a year, you’d have saved an impressive £667.95.
Easy-access savings
You can automate your savings by opening a savings account.
This way, you can set up a monthly standing order and slowly build up your funds, whilst earning interest.
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Choosing an easy-access account means you'll be able to withdraw whenever you want to help with unexpected costs or bills.
- has a free mental health and debt guide and has tools and advice.
- Call the Samaritans day or night for free on 116 123 or visit .
- Contact for help: