Mentally ill often trapped in poverty/debt cycle

May 12 2008

A study by a mental health charity has found that many people with mental health problems often go without food because of financial problems.

The charity Mind says that almost three-quarters of people with mental health problems run out of money at the end of each week and virtually all those questioned said debt had made their health problems worse.

The charity conducted a poll of 1,800 people and found that people with mental health problems are three times more likely to be in debt than the general population but two thirds were reluctant to tell creditors about any mental health problems.

However of the remainder who did inform the creditor of their issues, 83% had nevertheless been harassed about debt repayments regardless; 91% said debt had made their health problems worse.

Mind has called on banks and other creditors not to hound those with mental health problems but instead to find ways to help them.

Mind says as most households face rising fuel and food prices, the issue is particularly pertinent.

The survey found that half of the respondents had been contacted by bailiffs, who threatened to break in and take things or get the person sent to prison.

The British Bankers' Association says bank staff are not health practitioners and cannot diagnose mental health problems; Mind says people living with mental health problems are particularly vulnerable to being trapped in a cycle of debt and poverty and many are unable to work because of ill health.

Mind says a worrying trend is emerging of people becoming dependent on credit to pay for everyday essentials and many are left facing a debt mountain that they have no means of repaying.

Mind says those on lower incomes are only able to get credit from lenders who charge very high interest rates.

The charity is launching a section on its website to help people with financial problems and has called on banks and other creditors to help people with mental health problems who are struggling.

It suggests a change in practice such as waiving fees when a customer has been too unwell to manage their finances and introducing mental health awareness training for bank staff and says creditors are duty bound not to hound their customers, especially when they are coping with serious health problems.

The Bankers' Association says banks have specific staff able to help with mental health issues, and they try to help people before they get into really difficult situations.

The Association says customers who are longer able to look after their own affairs can have their banking needs looked after for them, but less serious health issues can be a silent problem unless the customer wishes to let their bank know.

Experts say bipolar disorder in particular can lead to impulsive buying and over-spending is often part of the condition and shopping sprees can include cars, holidays and computers, costing thousands of pounds as irrational decision-making takes hold.

During a low phase, a person may feel so depressed they are unable to leave the house or even answer the phone, unopened bills pile up and creditors are juggled.

The charity Credit Action says one in four people with mental health problems is in debt and warn that financial troubles can lead to anxiety, depression and even suicide, and urge lenders, debt collectors and health professionals to be alert as the credit crunch worsens.

It must however be acknowledged that banks and credit companies have a difficult job and tread a fine line between not discriminating against people with mental health problems and protecting vulnerable customers whose spending is out of control as a result of illness.