Debt problems ‘linked’ to mental illness

People struggling with debt could be at a greater risk of suffering psychological problems, a new survey has shown.

The research carried out by the Nottingham School of Economics revealed depression and other mental illnesses are likely to increase as millions of people continue to worry over their finances.

Professor Richard Disney, who carried out the study with Dr Sarah Bridges, said there was “undoubtedly” an increased risk of debt issues due to the credit crunch.

He added: “In such circumstances it’s no surprise that the incidence of mental health problems and psychological stress has also increased.”

The research included information from the Families and Children Survey, which questions around 8,000 people every year.

It showed that in 2005, 13 per cent of people who admitted to debt problems – and 17 per cent of those with financial stress – also reported mental health and psychological concerns.

Debt worries are also causing strain on family life, with a study for Clydesdale and Yorkshire Banks showing over a million households arguing more due to ongoing money problems.

By James Perkins