The silent struggle: debt, money and mental health

Navigating the turbulent waters of mental health challenges and the complex realm of finance, I find myself at the crossroads of two seemingly distinct worlds.

As a former mental health nurse specialist with two decades in the property industry as an investor and, more recently, as a broker, I have come to understand the deep impact debt can have on mental wellbeing.

The financial landscape is a tricky one, and its effects on mental health are far-reaching.

Having personally weathered the storm, I've felt the crushing weight of debt alongside severe mental health challenges. As a survivor of suicide, I recognise the urgent need for advisers and brokers to understand the interplay between these two realms.

The connection between debt and mental health is undeniable; debt often becomes a breeding ground for anxiety, depression, and various mental health issues.

Financial strain is more than just a numerical burden; it's a palpable, soul-crushing force that infiltrates every aspect of one's life.  

Advisers and brokers must acknowledge that their clients are not mere portfolios but human beings with emotions, vulnerabilities, and, at times, silent battles.

From my dual perspective as a former mental health professional and broker, I urge my colleagues to approach their clients with empathy and an understanding of the emotional toll that financial struggles can take.

Recognising the signs

A holistic approach to providing advice should extend beyond application forms, spreadsheets and interest rates to encompass the personal situation of the client.

Advisers must recognise the signs of mental distress in their clients.

Financial difficulties often manifest in subtle behavioural changes; a client who was once prompt with payments may start missing deadlines, or their communication may become strained.

Ghosting is common among those who simply cannot cope with more calls, emails and letters.  

Avoiding calls and taking time to respond is often a survival tactic when the weight of the situation becomes unbearable.  

These subtle cues should not be overlooked, as they may signify deeper struggles that require a compassionate and supportive response.

The need for self-care

Equally important is the wellbeing of the advisers themselves.

Providing financial advice and brokering services can be demanding, with pressures to meet targets and navigate the ever-evolving market.

Meeting customers' expectations is a high-stakes game in a financial climate where interest rates and lending criteria have changed so frequently.  

Acknowledging the need for self-care is not a sign of weakness but a testament to resilience.

Helping clients get the services they need has never been more challenging for those in financial services.  

At the front line, it’s the adviser who must deliver the good (or bad) news on the results of a client's mortgage or loan application.  

It's not easy telling someone their critical funding line has changed or been pulled altogether, yet this has been a regular occurrence in 2023 as a result of so many interest rate hikes and product changes.

Many lucrative deals have simply fallen over with advisers often not having an alternative to offer.  

Losing a deal is bad enough but without completions, advisers don’t get paid. Against this backdrop, advisers must give equal weight to prioritising their own mental and financial health.

Burnout in this field is a clear and present danger, and acknowledging the need for self-care is not a sign of weakness but a testament to resilience, foresight, and professionalism.

To truly make a difference, advisers must embrace a dual commitment: understanding the intricacies of their clients' lives while nurturing their own wellbeing.

The link between debt, money, and mental health is undeniable, and only by recognising this nexus can advisers provide the kind of transformative support that goes beyond financial guidance.

We can have a profound and positive impact on the mental health of our clients.

By fostering a culture of empathy, understanding, and self-care within the industry we can collectively contribute to a healthier, more compassionate financial landscape, one that recognises the human element within every transaction and values the delicate balance between financial prudence and mental wellbeing.

Patricia McGirr is chief marketing officer at Finanze Group