It took me eight years to clear my overdraft
I know too well that mental illness can exacerbate debt and financial problems - but is the game rigged or can we make positive changes?
I've lived with bipolar type 1 since I was a teenager, and an often overlooked symptom is impulsivity and its connection to overspending.
It wasn't until my early twenties that my spending went wildly out of control. Undiagnosed, with good credit, my bank had provided me with a sizable overdraft of £1250, and I took full advantage of it. I also took out a whooping three credit cards and four store cards. Often manic during those years, I spent astronomical amounts of money for a young twenty-something. My spending was out of control. On nights out, I was the one buying the group shots of tequila at the bar, subbing that mate whose money was tight and never asking for it back. Taking my girlfriend to holiday cottages and plush hotels, spoiling her with designer bags and fancy dinners. I even put a flight to Japan and all my accommodation on a credit card, with no feasible way to ever pay it all off. So you can imagine it wasn't long until I was in a mountain of debt. But because I was unwell, I just didn’t give a fuck.
My story isn’t an isolated one. It’s not a freak occurrence. A study by the Money and Mental Health Policy Institute of over 5000 people with mental health problems showed 93% spent more when they were ill. 72% reported that their mental health problems had made their financial situation worse.
When your debt is increasing every month, you’re constantly waiting for that next paycheck. You might have borrowed money from friends, families or banks and perhaps even defaulted on payments and have debt collectors circling. It’s an incredibly stressful situation to be in. Shame, embarrassment, anxiety, depression, insomnia, isolation and even paranoia are all common experiences for those in a position of financial uncertainty. Going deeper into debt absolutely has a significant impact on your mental wellbeing.
I was diagnosed with bipolar when I was twenty-six, and it became pretty obvious that the reason for my impulsive overspending was the episodes of mania I'd been experiencing over the twelve previous years. At this point, I’d maxed out my overdraft and regularly fell into an unarranged overdraft before the end of the month. Anyone whose been there knows it’s a vicious cycle; you fall into an unarranged overdraft, and your bank charges you for the privilege, so you have even less money to live on come the next payday.
Although we can all struggle with debt, people living with mental illness face a variety of challenges. Mental illness affects all aspects of a person’s life, and that includes their career and ability to work. While managing finances can present challenges for anyone, common symptoms of mental illness can make it particularly difficult to stay in control of your outgoings. Increased impulsivity, a low mood, and trouble thinking clearly can contribute to people spending more than they can afford. But we also know that people with mental health problems tend to have lower average incomes than the rest of the population, meaning there's less slack if an unexpected expense crops up.
While managing finances can present challenges for anyone, common symptoms of mental illness can make it particularly difficult to stay in control of your outgoings.
What may seem like a small debt to some, can feel insurmountable to others, especially those on a lower income or unemployed. There’s also the worry of living without a safety net; having little to no savings or people who can help financially. The burden of constant worry and the strain of debt can cause people with mental illness to become incredibly unwell.
Trapped by debt, I knew I had to do something. I was miserable, desperate and constantly stressed. This combination made me ill, causing episodes of bipolar, which, you guessed it, caused me to spend money I didn’t have. I cancelled all my credit cards, except for one, which I gave to my partner that was only to be used in a real, actual emergency. I moved money around so I would be paying lower interest rates on my debt. During the past eight years, I've had manic episodes, which have set me back again financially. But they've been less severe, and often I can spot the warning signs before it gets too serious.
It’s irrefutable that money and mental health are intertwined - and that those who struggle daily with mental illness are more likely to struggle financially.
What’s the answer? Well, the game is rigged to start with. In my case, I was undiagnosed when banks were throwing credit cards my way, but it was far too easy for a young person in a low paid job and no savings to acquire that much credit. It’s irrefutable that money and mental health are intertwined—and that those who struggle daily with mental illness are more likely to struggle financially. More steps should be put in place to help people before they begin overspending, and advice readily available if people find themselves in debt. Communicating seems to be key, as understanding how and why people struggle with all aspects of money when they’re mentally unwell.
Trying to get by on a low income can delay people's recovery—improved support for people through Statutory Sick Pay and benefits could prevent health and money problems from getting worse. Communication is critical, too. Whether it's a bank, the local council or the DWP (Department for Work and Pensions), understanding how mental health problems can affect our ability to manage our money and seek support can make a really huge difference. Help is out there from free debt advice providers such as StepChage and Citizens Advice.
I'm not free of debt completely, but knowing the money in my account is actually mine, that I'm not paying interest on, feels like a massive step. I’ve moved banks and no longer have an overdaft on my account. The most incredible feeling is not having that knot of stress in my stomach every day or that underlying stress I carried with me everywhere I went. It's gone.