Debt and Mental Health
Dealing with debt can cause a lot of stress
Experiencing financial difficulty can be challenging and may affect different areas of your life. It is important to take steps to look after your wellbeing while addressing your financial situation.
If you are dealing with increasing debts, it can sometimes feel overwhelming. Support is available, and there are organisations that can provide confidential assistance if you need someone to speak to.
Credit Counsellor Ltd provides general information about debt solutions and may introduce you to an authorised firm for regulated advice. If you are feeling distressed or in need of emotional support, you may wish to contact your GP or a recognised support organisation.
Click “CONTACT US” to start your journey, one of our friendly team will then be in touch to give you all the information you need to deal with your enquiry and refer you to one of our regulated associate experts.
Signs that you may be struggling
- Anxiety and stress: You might struggle to think about other things clearly, and your debts are clouding your thoughts.
- Guilt: Your situation may be causing you to feel guilty about the effect this may have on you and those around you, regardless of how you may have come into debt.
- Embarrassed: Personal financial circumstances are often already awkward to talk about, but this can be heightened when debts are involved, and you may feel ashamed about your situation.
- Hopelessness: You might feel that your debts are not budging, and seeing a way out of this may feel impossible.
- Sleep Issues: Financial worries may cloud your brain and be causing you to fall asleep. This may occur infrequently or develop into insomnia. Conversely, poor mental health and depression may leave you exhausted and over-sleeping.
Steps You Can Take
- Reach out to your friends/ family
- Speak to professionals
- Speak to Your Creditors Directly
- Do Some Research
- Take a Step Back
- Spending
‘Breathing Space’ and Mental Health Crisis Support
Breathing Space (Debt Respite Scheme)
The Breathing Space scheme (also known as the Debt Respite Scheme) is a government initiative available in England and Wales. It is designed to provide temporary legal protections for individuals experiencing problem debt.
There are two types of Breathing Space:
Standard Breathing Space – provides protection for up to 60 days.
Mental Health Crisis Breathing Space – available to individuals receiving qualifying mental health crisis treatment and lasts for the duration of that treatment (plus a set period afterwards).
During an approved Breathing Space period, most creditors must pause enforcement action, and interest and charges on eligible debts are typically frozen. Not all debts qualify, and certain conditions apply.
Eligibility
Eligibility criteria apply and are assessed by an authorised debt adviser.
In general:
You must live in England or Wales.
You must not already be subject to another formal insolvency procedure at the time of application.
You must meet the qualifying criteria set out in the regulations.
An application for Breathing Space must be made through an authorised debt adviser. Individuals cannot apply directly.
Credit Counsellor Ltd does not provide regulated debt advice or assess eligibility for Breathing Space. We provide general information and may introduce you to an FCA-authorised debt advice provider who can review your circumstances and confirm whether this option is appropriate.
How Do I Apply?
How to Apply for Breathing Space
For Standard Breathing Space, an application must be made through an authorised debt adviser. Individuals cannot apply directly to the government themselves.
For Mental Health Crisis Breathing Space, the application is also submitted by an authorised debt adviser. However, a qualifying Mental Health Professional must provide evidence confirming that the individual is receiving recognised mental health crisis treatment.
In certain circumstances, an application may be made on someone’s behalf. This could include situations where the individual is unable to apply themselves due to their circumstances.
Those who may assist or act on someone’s behalf can include:
A carer
A mental health nurse
A social worker or other social care professional
An authorised representative (such as someone with appropriate legal authority)
An Approved Mental Health Professional
Eligibility and evidence requirements are set out in the regulations and must be confirmed by an authorised debt adviser.
Credit Counsellor Ltd does not process Breathing Space applications. We provide general information and may introduce you to an authorised debt advice provider who can assess eligibility and, where appropriate, submit an application.
