Mental health

Access to bank accounts, credit and financial services is increasingly a component of modern life and can actively enhance people’s lives. Most people with mental health problems have the skills and ability to manage their finances. Having a bank account may help a person manage their money more effectively and keep track of their finances. It may make it easier for a person to have one place to keep their money and pay bills and receive a salary or benefits.

People who experience mental distress purchase goods and services, enter into contractual arrangements, and borrow money from banks and financial institutions, just like anyone else. But they may need reasonable adjustments or support to manage these transactions effectively.  Financial organisations need a better understanding of mental health and should reflect this awareness in the design of financial products.

What barriers could this group face?

Not all banks, lenders or other creditors have services in place for people with mental health problems who may occasionally experience problems with dealing with their financial matters. Financial organisations need to improve their understanding of mental health, striking a balance between sensitivity and commercial demands.

A person experiencing depression may sometimes be unable to deal with financial matters such as debt repayment. Creditors need to recognise that someone may not seem to be cooperating or responding because of their mental health problems.

People who have been diagnosed with bipolar disorder can have particular problems managing their finances. During a manic, or ‘high’, phase, people can feel euphoric, brimming with ambitious schemes and ideas, their confidence excessively high. They may reach financial decisions that seem sensible to them at the time but which, in retrospect, are not. People sometimes spend money extravagantly and build up considerable debts. They may be quite unaware of these changes in their attitude or behaviour.

After a high phase is over, a period of depression often follows. People can feel overwhelming despair, guilt and worthlessness. Problems concentrating and remembering things can make life very difficult and undermine the simplest tasks. The experience may provoke suicidal feelings. It is at this point when people have to come to terms with the financial difficulties and debts they have incurred while in the high phase. People are often shocked at what they have done and by the consequences they face.

Some other financial products are not well designed for people with mental health problems. Insurance has often been an issue for people with mental health problems as many people find that when they inform some insurance companies about previous or existing mental health problems, they are either refused cover or asked to pay an increased premium. Insurance companies have also sometimes refused to honour claims from people with an existing or previous mental health problem.

Many people with mental health problems live on low incomes. Social exclusion and stigma can lead to problems finding work, and distress may impact on people’s ability to remain in work without support. As a result, some people struggle to meet requirements for documentation or the necessary credit rating. People are sometimes unable to open bank accounts as they do not have the necessary ID.

What work has Mind done?

Additional links

Find out more about Mind’s ‘In the red’ campaign

Read the ‘In the red: debt and mental health’ report

Visit Mind’s ‘Money and mental heath’ webpages