Close links between mental health and debt, says report

By Sunil Peck

Almost nine out of 10 people with mental health problems are forced to use credit cards and borrow money to pay for food and everyday items, a report has found.

The report from the mental health charity Mind looks at the relationship between mental health, debt and poverty. Its findings are based on the responses of more than 1,800 people.

In the Red found that almost six out of 10 respondents had gone without food because they could not afford it; more than eight out of 10 had been harassed about their debts by banks, despite telling them of their mental health problems; and seven out of 10 had been unable to pay a bill after a final reminder.

Mind’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 training for staff in the banking and debt industry; for advisers on debt to work from GPs' surgeries; and a guide to money management for people with mental health problems to be distributed by doctors, hospitals and charities.

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: "All lenders recognise that individuals' personal circumstances may affect their ability to borrow and to repay that borrowing. 

“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."

Responding to a Mind recommendation that community psychiatric nurses, social workers and GPs 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."