debt isolation

Debt and Isolation – How to Beat the Odds

For many people, feeling debt isolation and loneliness because of debt has been a problem for a very long time. In the past, if people wanted something expensive like a new car or the latest phone, they would save up money to buy it outright. However, with the recent accessibility of financial tools like overdrafts, credit cards and payday loans, people are increasingly choosing to spend money on purchasing items that may be outside of their budget instead of saving.

As these trends continue, they will result in more complicated debt problems that will be harder to solve. In recent years, there has been a shift in focus onto mental health and the issues which may affect it. Research shows that debt can have detrimental effects one’s mental well-being, often causing unhealthy coping mechanisms such as increased spending.

Debt – The Impacts on Your Mental Health

Did you know that being in debt can lead to mental health challenges? It’s true! Studies have found a correlation between people in debt and those suffering from emotional distress. Being in debt not only impacts somebody financially, but it also affects their social experiences, which then leads to poorer mental health.

Research indicates that individuals who become socially withdrawn and isolated due to debt often feel lonely and helpless. When people isolate themselves from friends and family, it puts a great strain on these relationships. High levels of social isolation are directly correlated with high levels of loneliness.

All of these feelings can have negative impacts on mental health. In support of this, a study from recent years found that one in two individuals reported debt-related mental health problems.

If you add to this the legacy of the Covid 19 pandemic and the ongoing cost of living crisis with significant increases in monthly bills and food costs, it becomes a perfect storm for severe isolation. Being unable to spend time with family, friends and loved ones can harm people’s mental health problem in all sorts of situations. But those living with money problems likely suffer more because they’re constantly stressed about money and their ability to earn it.

When you’re in debt, it feels like you can’t do anything right. You lose control of your money and your life. This feeling of powerlessness often drives people into a state of denial or shame. They think, “I shouldn’t be this far behind; I must be a bad person.” But being in debt doesn’t make you a bad person—it makes you human.

By providing advice and supporting clients as they work to conquer negative emotions like shame, guilt, and regret, we can help them feel empowered to take control of their finances. Getting professional help when you’re in debt is one way to relieve the adverse effects it can have on your mental health—and gain some peace of mind.

Effects of Debt Problems and Social Isolation:

  • Isolation can be detrimental to your mental health, increasing your risks for conditions such as depression, dementia, social anxiety, and low self-esteem.
  • Dealing with debts alone causes higher levels of stress inducing hormones.
  • High blood pressure and heart disease are linked to stress.
  • Social isolation may even increase the risk of premature death.

Remember that there is always a light at the end of the tunnel, no matter how difficult your financial situation may be. The impact of struggling financially can take a toll on your physical and mental health, so it’s important to keep this in mind.

If you are a one of our clients and feel that you are struggling with your payments, you can contact us, and a member of the team will be happy to listen and offer solutions to this.

How Can Become Debt Free Help with Your Mounting Debts?

At Become Debt Free, our friendly team of debt experts are always available to talk with you about your financial situation. We can discuss your situation and the various debt solutions available for you. By talking through the issues, you’re facing and understanding your debts, we may be able to help break the cycle and get you out of debt.

We will help you better understand your debt and all available options to pay it off, including how those solutions will affect your credit score. You don’t have to go through this alone–allow us to provide the guidance and support you need!

Contact us today to discuss your options and start your journey to financial freedom.

Where To Go For Mental Health & Dealing with Debt Advice

If you have money worries and feel that you are struggling with your mental health here a few numbers which you can contact:

Money Advice Service

The money advice service provides free and impartial specialist advice on money and financial decisions whilst giving debt advice and guidance to help improve your finances and manage your money better. The government set up the Money Advice Service to give free advice to those who need it most.

Phone: 0800 138 7777 (8 am to 6 pm, Monday to Friday, 9 am to 1 pm Saturday)




Confidential support for people experiencing feelings of distress or despair.

Phone: 116 123 (free 24-hour helpline)

Citizens Advice

Citizens Advice can help you to make decisions on the kind of debt help that would benefit you the most and give professional debt advice.


Online Money & Debt Advice Chat Service:

Rethink Mental Illness

Support and advice for people living with mental illness.

Phone: 0300 5000 927 (Monday to Friday, 9.30 am to 4 pm)


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Tel: 0113 237 9500

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Customers can get free debt advice from the Money Advice Service – an organisation set up by the Government to offer free and impartial advice to those in debt. For more information from the Money Advice Service visit MAS is part of the Money & Pensions Service. We are not affiliated with MAS in any way.

Become Debt Free is a trading style of Re10 (Finance) Limited Registered Number 04651137.  Data Protection Act Registration Number – Z8613095

Become Debt Free specialise in providing and administering Individual Voluntary Arrangement (“IVA”) solutions to individuals based in England, Wales and Northern Ireland.  We do not administer Debt Management Plans, Debt Relief Orders, or any other debt solutions.  We only provide advice after completing or receiving an initial fact find where the individual(s) concerned meets the criteria for an IVA, therefore, all advice is given in reasonable contemplation of an insolvency appointment.

* To qualify for debt write off in an IVA with us, you must have a minimum of £7,000 of qualifying unsecured debt owed to two or more creditors.  The amount of debt write off is based on your own personal circumstances – typically this could be up to 85% of what you owe; and this has been achieved by over 10% of our customers who have successfully completed their IVA’s in the last 12 months.  The amount of debt write off differs for each customer and is dependent upon their individual financial circumstances and subject to the approval of their creditors.

Andrew Bowers is authorised in the UK to act as Insolvency Practitioner by the Insolvency Practitioners Association.


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