Money can affect more than just your bank balance. For many people, it also impacts mood, confidence and even sleep. If you’ve ever found yourself lying awake at night, worrying about bills or dreading checking your bank account, you’re not alone. Financial anxiety is common, and it can creep into daily life in subtle ways.
If debt is one of the reasons behind your worries, you may want to understand the different types of debt and how they affect your situation. Some debts carry more serious consequences than others, and knowing the difference can make it easier to take the first step.
In this guide, we’ll explore the causes of money anxiety, the common signs to look out for, and practical steps you can take to start regaining a sense of control over your finances.
What is financial anxiety?
Financial anxiety is a term used to describe the worry and fear linked to money. It can affect anyone, whether you’re struggling with debts, finding it hard to cover household costs, or on a low or unstable income. However, you can still be affected if you’re in steady employment and are managing to pay your bills.
It isn’t always about the numbers on the page. Sometimes, it’s about how money makes you feel. The thought of opening letters, looking at bank statements, or even talking about money can feel overwhelming. Many people even feel scared to open debt letters, which makes it harder to keep on top of their finances.
It’s also worth noting the difference between everyday money worries and financial anxiety as part of a wider mental health condition. Feeling stressed about bills or debts is common, but if your anxiety is affecting your daily life, sleep, or overall wellbeing, it may be more than financial worry. In that case, it’s a good idea to speak to your GP for support. You can also find guidance on anxiety and mental health on the NHS website.
Money anxiety causes
So, how can money cause stress? The answer isn’t always simple, as financial worries can come from different areas of life. Some of the most common causes include:
- Debt – credit cards, loans or overdrafts can quickly mount up, especially if interest rates are high.
- Rising living costs – everyday essentials like food, rent, and energy bills can feel harder to keep up with as the cost of living rises.
- Job insecurity – worrying about hours being cut or losing employment altogether.
- Unexpected expenses – car repairs, broken appliances or emergencies can hit hard when budgets are already stretched.
- Pressure to keep up – social expectations, particularly around family, friends, or social media, can make people spend more than they can afford.
Any one of these can create money worries, but combined, they can quickly lead to ongoing financial anxiety.
How financial worries affect mental health
Money and mental health are closely linked. When finances feel out of control, it can spill into other parts of life. People may:
- Avoid opening letters or bills, fearing bad news.
- Experience trouble sleeping, finding it hard to switch off.
- Withdraw from friends and family, especially when social activities cost money.
- Feel guilty or ashamed about spending.
Over time, these feelings can create a cycle with money worries affecting mental health, and in turn, poor mental health making it harder to deal with money.
Signs you may be dealing with money anxiety
Everyone experiences financial worry differently, but some common signs of money anxiety include:
- Constantly checking (or avoiding) your bank balance.
- Feeling panicked before payday or when bills arrive.
- Difficulty making decisions about spending, even on essentials.
- Physical symptoms, such as a racing heart or headaches, when thinking about money.
- Putting off important financial conversations or paperwork.
If these signs sound familiar, you’re not alone. Recognising them is an important first step in dealing with money anxiety.
Practical steps for dealing with money anxiety
You can’t always control the cost of living or unexpected expenses, but you can take steps to feel more in charge of your money. Here are some practical ways to start:
1. Make a simple budget
Write down your income and your outgoings. Start with essentials like rent, food, and utilities. Seeing the numbers in black and white can feel daunting, but it also gives clarity on what’s really happening.
2. Tackle urgent payments first
Not all debts are the same. Some, like rent or council tax, carry more serious consequences if missed.
3. Open one letter at a time
If you’ve been avoiding bills or debt letters, start small. Choose just one to open. Often, the fear of the unknown is worse than the reality.
4. Talk to someone you trust
Opening up to a friend, family member, or professional adviser can take the weight off your shoulders. You don’t have to go through it alone.
5. Explore debt solutions if needed
If repayments have become unmanageable, there are formal options available. Debt Management Plans (DMPs) and Individual Voluntary Arrangements (IVAs) are two solutions that could make payments more affordable.
When to seek professional help
If money worries are starting to take over daily life, it may be time to get professional advice.
To start tackling your money problems, you can visit MoneyHelper for free, impartial advice.
Debt advice is also available at MoneyPlus. Our advisers can talk you through different debt solutions and help you find a manageable budget that works for you.
After taking out a debt solution, 2 in 3 customers who took part in a survey by MoneyPlus said they felt less stressed* – suggesting that structured support can make a difference to how people cope with money worries.
*MoneyPlus customer survey 366 respondents May 2025.
