Money at the root of mental health problems
The extent of the problem is shown by the number of people taking out loans to cover basic household spending: 5 million British consumers have taken out a loan to cover home repairs and improvements in the last year. February is the most common month for home repairs.
In the last three years, consumer anxiety has reached an all-time high and according to the Psychiatric Morbidity Survey, there are 6 million in the UK suffering from depression and anxiety and financial worries are at the core. The FairMoney research showed the majority of us will still be paying off our Christmas debts until summer 2019 and over half of adults in the UK are managing problems with debt and subsequent mental health issues.
Today is Time to Talk day, which encourages the nation to discuss their mental health and generating awareness around the root cause. Supported by Mind, the National Lottery and Department of Health and Social Care, the day aims to challenge the stigma around mental health problems.
Executive chairman and founder of FairMoney Dr Roger Gewolb, said: “As the economy slows, there are over three million adults living in the UK with financial difficulties and mental health issues. Unfortunately, this is continuing to grow. Lending practices contribute to wellbeing and mental health issues, and lenders need to be accountable for this. With such pressure, it’s not surprising that consumers turn to payday lenders and credit cards to battle the financial burden.
“Fairer finance needs to available for all to help with these social ills. Payday loan providers have their place in society for cash-strapped Brits but this must be done in an ethical manner. Most people have been abandoned by poor lending practices that stem from the financial crash of 2008. We’re more than a decade on – things need to have changed. The sector must be eradicated to eliminate such ills.”