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Christmas is an exciting time of year for many of us – getting the family together, great food, drinks, presents – but it can also be very stressful. We put pressure on ourselves to make it ‘special’, aiming for ‘the best Christmas yet’… but what can that pressure lead to?

PayPlan, the free debt advice provider, has teamed up with mental health charity SANE to highlight the risks of getting into debt at Christmas, and the effects debt can have on your mental health.

We want to get conversations started – what is the cost of Christmas, not just on your wallet but also on your health?

Watch the animation here: PayPlan & SANE Happy New Year message

Or read on to find out more about the effects debt can have on your health, now and throughout the year.

Debt & mental health

Earlier research from the Money Advice Service revealed that 8.2 million adults – or 16.1% of the population – live with problem debt. That’s a huge number of people dealing with an increasingly stressful situation.

Being in debt can make you feel like you’ve lost control of your finances – leading to feelings of hopelessness and anxiety.

We surveyed some of our customers and found that:

  • 91% admitted feeling stressed about their finances
  • 82% experienced regular anxiety
  • 60% reported depression
  • 62% experienced insomnia

These are worrying statistics which highlight the real impact debt can have on your health.

A further 42% of people seeking debt help have been prescribed medication to help them cope. Anxiety and depression are serious health conditions, and if you feel you may be affected, it’s important to seek support.

Getting support

If you’re struggling, there are simple steps you can take:

  • Talk to loved ones – opening up can help you feel less alone and more in control
  • Seek debt advice – if debt is at the root of your worries, tackling it early can make a big difference

Together, we can help reduce stigma around debt and mental health.

Real story: Michael’s experience

Michael (25), a Kitchen Assistant from Tattershall, first got into debt after leaving college. After taking out a few credit cards, loans and lending his friend some money, Michael was soon struggling

 “I took out another Pay Day loan to pay off the interest off the other loans. I had no money but loads of interest charges. Even when my friend paid back the money he owed, it barely touched the interest on my debts.

“By this time I was in over my head and my debts were out of control. I owed just over £8000 and all of my pay cheques were going to my creditors; it was only paying off the interest and none of my debts were being cleared.

“Living with all of this made me physically sick with worry and I was so tired through lack of sleep. I started suffering with deep depression, which affected my girlfriend and eventually our relationship broke down.”

Michael’s depression and his family’s concern for his well-being made him realise he’d reached breaking point. He contacted his local Citizen’s Advice Bureau who put him in touch with PayPlan.

“Life is bliss now compared to before. I’ve stopped buying what I want and only buy what I need. I’m managing my budget a lot better now and I’m a lot more wary of loans and any other type’s of credit.”

Where do i go from here?

If you or someone you love is affected by debt or mental health, here are some steps you can take:

  1. Speak to someone you trust
    A friend, relative or colleague – talking things through can help you decide what to do next.
  2. Get free debt advice
    PayPlan offers free, confidential advice to help you find the right solution for your situation.
  3. Speak to a mental health charity
    SANE is available on 0300 304 7000 (4:30pm – 10:30pm) for support and guidance.
  4. Check your credit score
    Use a free service like Experian to understand your financial position.
  5. Access further money guidance
    Visit the Money Advice Service for tools and support to help manage your finances.