You might wonder – what’s that got to do with mental health?
Well, a lot, actually.
Money’s harder to manage if you have a mental health problem. And being in debt makes it harder to look after your mental health.
That’s why it can feel really difficult to get out of a debt – mental health cycle.
Thankfully, if this is something you recognise, there are organisations out there ready to help you. Check out these organisations or our website for more help and support.
New research from the Centre for Responsible Credit shows how concerns around credit scores can prevent people in financial difficulty from seeking help and should be viewed as one aspect of financial health, not the entirety.
Stats from the report show that:
Credit score concerns stop hard-up borrowers from seeking help: Industry-promoted fixation on credit scores deters three quarters of borrowers from seeking support, making debt problems harder to resolve.
Credit score messaging pushes people into hardship: A third (32%) of low-to-middle income borrowers; 6.4 million people are going without essentials like food and heating specifically to preserve their credit score.
“Your latest credit score is ready.” It’s a familiar email or app notification from credit score providers such as ClearScore, Credit Karma and Experian.
But it’s part of a marketing culture that could be encouraging low-to-middle income (LMI) borrowers to take on unaffordable credit and prioritise actions that maintain good scores over spending on essentials such as food and heating.
That is why we are now calling on the newly created Credit Information Governance Body and the Financial Conduct Authority to work with the credit scoring industry and consumer agencies to set standards for marketing dashboards. It’s one of five recommendations set out in this latest report, the second phase of our research in this area.
The first phase, published in July 2025, comprised qualitative interviews with thirty LMI borrowers. The interviews indicated there is a group of people who are highly sensitive to their credit scores, checking these on a frequent basis.
The frequent checking of scores seems to be encouraged by the many e-mails and app notifications that borrowers receive from credit score providers. When they respond to these and visit their credit score dashboards, they are often exposed to marketing offers for further credit.
Worryingly many participants felt that the best way to improve their credit scores was by taking out more credit and using it regularly. Many were also prepared to make considerable sacrifices to preserve their scores.
The scale of the problem
The second phase of our research involved a large-scale, representative, survey of more than 3,400 LMI adults in Great Britain; conducted on our behalf by Walnut Unlimited. Three-quarters of survey respondents used some form of credit (credit cards, Buy Now Pay Later, overdrafts or personal loans) with 40% using it to pay for daily expenses such as food and bills.
Most LMI borrowers check their credit scores at least once per month. Just under one fifth (18%) check their scores at least once per week, and an additional 15% do so more than once per month. A further fifth (21%) check their scores monthly.
When they do so, many enter on-line market places where they receive offers of further credit that may not be appropriate. Our survey indicates that over half (55%) of all survey respondents had received suggestions or offers for credit products from their credit score provider. Half of those (49%) felt that the offers they received encouraged them to take on more credit than they could afford, and over a quarter of (28%) reported feeling pressured to accept the offers that were made to them.
Nearly half (43%) of those being prompted to take up offers of credit by their score providers act on the suggestions they receive, but in many cases this results in financial distress within six months.
Around one in five saw their overall level of debt increase, and the same proportion (21%) experienced stress or anxiety. 18% struggled to make the repayments. 18% also cut back their spending on essentials, while 14% had to borrow more to cover the repayments, and around one in ten missed payments or defaulted.
And yet, alarmingly, three-quarters of borrowers said they would not ask for help from their lender. That’s because most people are unsure whether seeking advice or help will harm their credit score.
A disciplinary effect
Our survey also found clear evidence of a disciplinary effect, with one third (32%, equivalent to 6.3 million adults aged over 18) of all LMI borrowers telling us they have “cut back on day-to-day expenses to preserve” their credit scores.
This rises to 45% of borrowers who are using credit specifically to improve their scores, and to 55% of borrowers using credit to pay off other debts.
We also found a statistically significant relationship between the likelihood of cutting back on essentials to preserve scores and the frequency of score checking.
After controlling for age, housing tenure and incomes, over half (52%) of those checking their score more than once per week have cut back on essentials to preserve their score, as have 45% of those checking their score at least at few times per month.
Actions needed
To address the harms our study exposes, we are calling on Financial Conduct Authority, Credit Information Governance Body and credit score providers to ethically re-design, test, and set standards for credit score dashboards and their marketing.
This needs to include a review of dashboard messaging, so that providers don’t promote credit to people already showing signs of financial difficulties. Dashboards should make it clear that maintaining credit scores should not come at the expense of meeting basic needs.
More is also needed to encourage forbearance requests and debt advice seeking by ensuring dashboards proactively identify borrowers in financial difficulties and link these to independent advice and support, and there is a need to limit push notifications and dashboard marketing, to prevent borrowers from focusing on marginal score changes, and only allowing notifications when underlying credit report information has significantly changed.
The cost-of-living crisis has shattered the finances of millions, with more than a quarter of people currently unable to cover their basic expenses. It’s time for credit score providers to take action to make sure their marketing and processes are not compounding the problem.
Responding to research from the Centre for Responsible Credit, Adam Butler, Public Policy Manager at StepChange, said:“Whilst credit scores can help people understand how lenders may see them, the reality is that they are only one element of what lenders look at when assessing creditworthiness.
“Our research shows that people in financial difficulty often delay seeking help because of worries about the impact on their credit scores.
“This deepens the harm of problem debt and can lead people to take out further credit which exacerbates their financial problems. It’s important to note that seeking free debt advice and exploring options will not have an impact on someone’s credit score.
“The Financial Conduct Authority (FCA) has required the credit information industry to set up a new governance body with stronger consumer representation and make reforms to encourage struggling borrowers to seek help early.
“We want the industry to build on these steps and ensure people can seek help when they need it without fear of punitive credit reporting. As our recent polling found that 18 million people have an outstanding unsecured credit balance of some kind, a credit information system that works well for those who are struggling is vital.”
As Scotland faces a sharp drop in temperatures, national children’s charity, Children First, is encouraging families in Edinburgh who are struggling with the cost of living and keeping warm this January to reach out for help.
The charity warns that they are hearing every day from parents and carers that are struggling to make ends meet and provide basic essentials for their children.
Children First’s support line offers practical, emotional and financial help to families across Scotland 365 days a year.
The team saw the number of callers rise by close to 50 percent towards the end of 2025.They can help with benefit checks, budgeting advice, and accessing emergency support to ensure families stay warm and well this winter.
Simon McGowan, Assistant Director at Children First, said: “We want every parent and carer in Scotland to know they are not alone if they are worried about paying bills or keeping their children warm.
“Our friendly support line team is here to listen and provide expert advice to ensure families get the support they need. We understand how hard it can be trying to make ends meet and the pressure families are under.”
In 2024, Children First’s support line helped families secure close to £2.5 million in financial gains and deal with half a million pounds in debts to make them more manageable.
Kinship carer Tony* who is bringing up his two-year old granddaughter Cara* and had been struggling to make ends meet, got help with his finances from Children First’s support line.
He said: “It was only when Children First support line got involved that things started to get better. I feel like a massive weight has been lifted off my shoulders, it’s such a relief.”
The Financial Conduct Authority’s review of certain types of credit builder products found little evidence that they are effective for most consumers.
FCA want consumers to be able to make informed decisions so that they can navigate their financial lives.
That’s why we carried out work to understand how some credit builder products operate and have been working with firms and credit reference agencies (CRAs) to drive improvements in the market.
Here we explain the work we’ve done, and where consumers can access useful information on improving credit profiles, such as via MoneyHelperLink (external)
What we looked at
Credit builder products claim to help you build a record of making payments, which could improve your credit history and score.
Our review focused on specific credit builder products that simply report your regular payments to CRAs with the sole aim of helping you ‘build’ your credit score or history.
These products typically do not involve regulated credit. But because they are closely linked to the wider credit market and tend to be marketed to people who have little or no credit history, we looked at how they affect consumers.
We didn’t look at other products or features often described as credit builders like low-limit credit cards, rent reporting services, or services which simply explain how your credit file works.
Our key findings
Effectiveness: For most consumers, there is little evidence that these credit builder products significantly improve credit scores.
Potential risks: In some cases, firms reporting payments on these products to CRAs can potentially misrepresent a customer’s financial circumstances and help facilitate access to unaffordable credit. For consumers experiencing financial difficulty, these products are even less likely to positively affect credit scores and may reduce the amount of income available for essential living expenses.
Complexity and regulation: The majority of the credit builder products we looked at are unregulated and firms often fail to clearly explain their limitations and risks.
Our work
Based on our feedback, 5 firms have chosen to stop offering this type of credit builder product. Others have changed their products, business models and marketing materials.
We continue to work with firms offering these products as we decide whether we should take further action.
We’ve engaged with CRAs on new data reporting guidance to ensure that only appropriate information is reported that accurately reflects repayment performance.
What to consider as a consumer
There’s little proof that these products will help improve your credit score or make it easier to get affordable credit.
Think carefully about whether these products fit your needs and are worth the cost.
For more information on improving your credit profile, like tips on low-limit credit cards, or for free debt advice if you’re having money problems, visit:
StepChange has welcomed the Financial Conduct Authority’s (FCA) review into credit builder products, and the harm that they can cause to consumers, particularly if they are struggling with debt.
Peter Tutton, Director of Policy, Research and Public Affairs at StepChange, said:“We welcome the FCA’s new review into credit builder products.
People who have a poor credit history or are new to credit may choose to use these products explicitly to build their credit score. Advertising of these types of products can exaggerate the benefits of having a good credit score, and lead consumers to believe it will help them get access to credit or other financial services.
“Our research finds people in financial difficulty delay seeking help because of worries about their credit scores – almost half (45%) of people finding it difficult to keep up with credit repayments were offered more credit. This increases harm and makes debt problems worse.
“The reality is that credit scores are only one element of what lenders look at when assessing credit worthiness. We support the FCA’s wider work as part of the Credit Information Market Study that lenders should report forbearance arrangements more positively which would make people more confident to get better and earlier help with their debts.
“We need to ensure the credit information system is not used to push people further into harmful debt.”
More support for services to help people struggling with energy bill debt
Services that support people struggling with debt on their energy bills have been expanded after receiving almost £1 million of additional funding.
This will help organisations to provide money and debt advice to customers, increase capacity through additional training for staff, and enhance engagement with energy suppliers to facilitate fairer and more sustainable debt solutions for customers.
£944,000 has been allocated equally between Citizens Advice Scotland, StepChange Debt Charity and Advice Direct Scotland.
Housing Secretary Màiri McAllan announced the investment at the beginning of Talk Money Week, an annual campaign from the Money and Pensions Service to increase awareness of personal finance issues.
Ms McAllan said: “In an energy rich country like Scotland, nobody should be struggling to pay their energy bills.
“The UK Government said energy bills were going to come down, but they’ve only gone up and could rise further still.
“That underlines the importance of our investment in services that support those who are struggling the most.
“Advice agencies like Citizens Advice Scotland, Stepchange and Advice Direct Scotland, play a vital role delivering this support and we will continue to work closely with them to ease the burden of the cost of living and help those who need it.”
The funding is part of a £16.9 million package being invested in free income maximisation and debt advice.
Sharon Bell, Head of StepChange Debt Charity Scotland, commented: “Scotland is facing an energy debt crisis and more and more clients are coming to StepChange Debt Charity Scotland with spiralling energy arrears.
“We welcome this additional funding from the Scottish Government which is allowing us to provide vital energy debt advice to more people across Scotland right when it is needed the most.”
For Debt Awareness Week, we’re highlighting how debt affects mental health – and the support that is available to help.
Throughout the cost-of-living-crisis many people have had to turn to lenders and may be struggling to keep up with their repayments. The mental health toll can be really challenging, with increased feelings of anxiety keeping you up at night or making it harder to enjoy your relationships. It can make existing mental health problems like depression worse and all together, feel overwhelming.
The mental health effects of debt can make navigating it an even more isolating and lonely experience. It’s important to remember that you are not alone, and that there is support available to you.
Want to know more? Join us for our Reddit ‘Ask Me Anything’ 26-28 March r/ukpersonalfinance. We’ll be joined by StepChange to answer all your questions on mental health and debt.
GRANTON INFORMATION CENTRE: FEEDBACK SURVEY
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GIC are passionate about providing the best possible service to our clients and we are delighted with the results and the many positive comments we’ve received since April:
A new Citizens Advice Scotland campaign is encouraging people to seek advice if they are worried about their debts, as research shows over 660,000 people cite debt as impacting their mental health.
Analysis of polling from research company YouGov suggests around 665,148 people in Scotland have seen their mental health and wellbeing affected by debt.
The “Stressed about Debt?” campaign aims to encourage people who are worried about their bills or stressed about debt to seek advice from the Citizens Advice network.
People can go to www.cas.org.uk/stressed and pick an advice route that works for them, such as online self-help tools, online advice pages or one to one advice from their local CAB.
The CAB Service helps improve people’s financial situation and for some this includes debt write -off. Since last spring CABs have helped write off over £11 million worth of debt, with the average amount written off being over £12,600 per client.
https://youtu.be/Os-Qv09KO_0
CAS Financial Health spokesperson Sarah Jayne Dunn said:“There is a clear link between money and mental health and that will have been exacerbated by the cost-of-living crisis.
“Hundreds of thousands of people across the country, through no fault of their own have fallen behind on bills and find themselves in debt. Some people will be in debt for the first time, others will have seen their existing debt get worse.
“There’s no shame in having debt, and it’s completely understandable to be stressed and anxious about it. For many people, debt is something they ignore until it builds up and becomes overwhelming.
“That’s why we’ve launched the Stressed about Debt campaign, to encourage people who are worried to seek advice and not let those worries build up until they are suffocating.
“You don’t need to go to a CAB to get advice, instead you can check our online advice pages or use our interactive self-help tools.
“Our network gets real results for people – last year people who saw a gain having sought advice were more than £3,700 better off. Our advice is impartial, confidential, and crucially free – we don’t charge for our advice, and we never will.”
Scottish Government Housing Minister Paul McLennan MSP said:“I welcome this important and timely campaign from Citizens Advice Scotland.
“Advice services play a critical role in helping people to navigate the current cost crisis and to access the support and information they need. The cost-of-living crisis is putting a huge strain on households which is why the Scottish Government is doing all it can to deliver support.
“This year we will invest over £12.5 million in a range of advice services providing free income maximisation, welfare and debt advice. This includes more than £4.45 million to Citizens Advice Scotland and the network of Bureaux for the Money Talk Team, which offers free confidential and holistic advice. Access to free, confidential and impartial advice through the CAB network, either online or in person, can make a massive difference for people.”
Alex Cumming, Executive Director of Operations at SAMH (Scottish Action for Mental Health), said:“Poor mental health can be a factor in building up debt, and debt can result in mental health problems, including stress and anxiety. Debt and mental health problems often form a vicious circle, and it’s important to seek help for both.
“At SAMH, we hear time and again from the people we support, including those who contact our information service, that they are experiencing issues with money at the same time as needing help with their mental health.
“We welcome Citizens Advice Scotland’s campaign and encourage anyone who is stressed about debt to take that first step towards getting the support they need.”
As well as Citizen Advice Bureaux across the city, free and independent local debt advice is also available from a number of organisations including CHAI, Granton Information Centre and the city council’s Advice Shop.
New research shows nine in ten (90%) under 25s feel uncomfortable discussing finances
“We’re here to help”: charity reveals the number of young people needing support with managing money has doubled since 2019
Citizens Advice to place 6m-tall elephant in Manchester city centre to address the ‘elephant in the room’ and encourage young people to talk about their money troubles
The number of young people needing help with managing money has doubled since 2019, Citizens Advice has reported. The charity, which supported 66,000 under 25s last year alone, says one in five (20%) young adults seeking its advice need help with debt.
Citizens Advice warns many young people are feeling particularly squeezed by the cost-of-living crisis as they face a triple whammy of soaring living costs, rising private rents and high inflation. The charity is helping record numbers of people amid rising financial pressures.
Despite this, the vast majority of young adults still feel uncomfortable discussing finances. According to the charity’s new research, nine in ten (90%) under 25s shy away from such conversations, and would rather talk about sensitive topics like health issues, politics or religion instead of money.
To address this ‘elephant in the room’, Citizens Advice has placed a giant 6-metre-tall inflatable elephant in Manchester city centre, aiming to create a talking point and encourage young adults to open up about their finances and seek support.
The elephant is being displayed in Exchange Square, by Manchester Victoria Station, on Saturday 17 February to try to break the silence young people experience when it comes to talking about money and raise awareness of the support Citizens Advice can offer. Staff and volunteers from the charity will be on the ground in Manchester to help answer questions from the public and give advice and support on money troubles.
The elephant’s colourful, money-related pattern has been designed by India Buxton, a Fine Art student at the University of Salford, who was commissioned by Citizens Advice after winning its competition.
India, who received £500 prize money, said: “It feels fantastic to win the competition. Many young people, myself included, are in the dark about finances and don’t know where to start, or who to ask for help. It can feel like an embarrassing conversation, but it’s so important to do it, and hopefully this artwork will help get people talking.”
In the Citizens Advice study, embarrassment was listed as the top reason why young adults feel uncomfortable discussing money, followed by the fear of comparison.
The top five reasons why young people feel uncomfortable talking about finances are:
Feeling embarrassed of their financial situation (35%)
Feeling worried how their finances compare to others (31%)
It’s too personal a topic to talk about (18%)
Not wanting the other person to feel uncomfortable in the conversation (15%)
Not knowing enough about finances to talk about the topic confidently (12%)
Jack, 24 from Derby, is in his first graduate job after finishing university and has around £2,000 in debt, mostly due to late payments on utility and council tax bills. He would love to pay off his debts and start saving, but is currently living “pay cheque to pay cheque”, as the cost of living crisis makes it even more challenging for him to manage his money.
Jack finds conversations about money difficult, but knows that avoiding the topic isn’t helping his financial situation.
Jack says: “My finances are not in a good position, and I feel terrible about it. My debt is going down gradually, but I don’t think it’s ever going to hit zero.
“I’d feel more comfortable talking about money if I had a clue what’s going on, but I don’t like discussing it. Even though I know that talking to people who have had similar experiences to me would probably do me the world of good, I still won’t do it, because it’s awkward and stressful.
“I’ve actually straight-up lied to avoid talking about my financial situation. For example, I didn’t have the heart to tell my flatmate that I couldn’t afford to go halves on a rental deposit, so I talked them into a zero-deposit option, even though I knew it put us in a worse position in the long term. It made me feel like a failure.
“A massive part of the problem is the cost of living. Everyone says, ‘Make a budget plan and stick to it.’ I would, but if my bills are going up by £100 every two months, where is the extra money going to come from?
“I fully think that my financial situation has been affected by not knowing where to get good advice. If I’d just spoken to someone and explained my current situation, they might have been able to tell me what to do.”
Rosi Avis, Partnership and Communication Lead at Citizens Advice Manchester, says: “All of us can struggle to find the words when it comes to talking about our finances. And we know young people are really feeling the pinch with rising costs and sky-high rents.
“At Citizens Advice we help thousands of people find a way forward every day. So whether it’s a dodgy landlord, a retailer who’s refusing to give you a refund, or help with credit card debt, we can support you.
“The most important first step is to speak to someone about your worries: whether it’s a family member, a mate or one of our trained advisers. We’re here to help and make you feel less alone.”
To support young people to feel more comfortable discussing finances, Citizens Advice has created an expert guide here:
