Debt

Poor mental health can make earning and managing money harder. And worrying about money can make your mental health worse. It can start to feel like a vicious cycle.

We can often feel embarrassed or overwhelmed when talking about money and mental health problems, but you are not alone. Let us tackle them both, together.

If your income changes it may become very difficult to continue to pay back your debts. The rising cost of living has caused a lot of people to fall into debt, or be unable to pay back ongoing debts. If you find yourself unable to make payments, it is important to speak to the people you owe money to and get help as soon as possible.

Priority and non-priority debts

When you seek help with your debt, an advice worker will speak to you about priority and non-priority debts. It is important to know about these.

Priority debts:

These debts have significant consequences if not paid. For example, if you do not pay your rent or mortgage, you risk losing your home. Also, if you do not pay your utility providers, you may lose your electricity or heating. As such, these debts are the most urgent to tackle.

Non-priority debts:

If you have credit card loans (that are not secured against your property) or overdraft payments, these may be classed as non-priority debts, as there will be no direct or immediate action that the creditor can take against you if you do not pay. They will have to apply to court to take any action, which gives you time to assess your finances and make an offer if you can.

Help and support

There are a number of options available to you if you cannot pay your debts. You will need to speak to a debt advisor who will review your income and expenditure and work out the best option.

If you live in Manchester and need help managing your debts, please contact one of the following:

Manchester Mind

Step Change

Citizen’s Advice Manchester