People in debt more than twice as likely to report very poor mental health, new research reveals
As the UK continues to face both a cost-of-living and mental health crisis, the latest research from National Debtline exposes the worrying impact that debt can have on the nation’s wellbeing.
Posted May 12, 2025
As the UK continues to face both a cost-of-living and mental health crisis, the latest research from National Debtline exposes the worrying impact that debt can have on the nation’s wellbeing.
To mark Mental Health Awareness Week, National Debtline has published new research emphasizing the stark correlation between debt and poor mental health.
The research finds people behind on their household bills are more than twice as likely to struggle with very poor mental health. 16% of UK adults behind on households bills reported their mental health to be ‘not good at all’, compared to just 6% of adults who were not behind on bills. They were also almost twice as likely to have very poor physical health, with 13% reporting this, compared to just 7% those who are not behind on these bills.
In total, two in five (38%) adults behind on bills reported some degree of poor mental health, significantly higher than those who were not behind on any bills (24%).
Almost a third (31%) of people who had faced debt problems in the past three years said their mental health get worse as a result, while a fifth (18%) said their physical health worsened. As demand for mental health services on an already stretched NHS continues to rise across the UK, the findings highlight the importance of joining up mental health and financial support services to help tackle and prevent mental health conditions worsening.
The data also paints a picture of struggles faced by different groups in society. In particular, mental health deterioration as a result of being in debt rises considerably among the 25 - 34 age group (with 42% reporting their mental health got worse as a result of being in debt) and 35 – 44 (34%) age group. This could be indicative of certain generational financial pressures faced by millenials and Gen-Z, such as high renting costs. The research also found that two in five (40%) of private renters saw their mental health worsen as a result of being in debt, potentially reflecting the particular financial and housing insecurity private renters face.
Money worries are fuelling the mental health crisis even amongst those who are not yet in debt. Half of people (50%) who are very worried about their finances, but have not yet fallen behind, report that they have poor or very poor mental health, as the cost-of-living crisis continues to take its toll.
This comes after additional National Debtline data showed that a significant 7 million UK adults (13%) are behind on at least one household bill. This number is likely to rise following last month’s price hikes, tipping even more people into financial precarity and putting more people’s mental wellbeing at risk.
“We know that for many, debt can provoke feelings of isolation and risk harming mental wellbeing – but no one should have to face these problems alone”, says Steve Vaid, Chief Executive of the Money Advice Trust – the charity that runs National Debtline.
“Our advisers at National Debtline offer free, impartial advice to help you understand your options, so I urge anyone feeling concerned to get in touch.”
Recent research with people helped by National Debtline highlights that after speaking to an adviser, four in five callers (91%) saw their debts reduce or stabilise and three in four (72%) reported a positive impact on their emotional and mental wellbeing.
In order to best support people with pre-existing mental health conditions as well as those who find themselves seriously struggling with their mental health as a result of their debt, National Debtline also runs a successful service partnership with Rethink, who run the Mental Health and Money Advice Service in England.
Steve continues,
“Our partnership with Rethink allows us to work together to offer people specialised, holistic support at a pace that suits them. We know people experiencing mental health issues may struggle to engage and that money worries can feel overwhelming if you don’t know where to turn. The partnership focuses on helping people on a casework basis, including access to a wide range of support tools.
“We are proud to collaborate with Rethink to help as many people as we can struggling with debt and its impact.”
