If you’re feeling overwhelmed by debt, you’re not alone. Struggling with money can affect every part of life – from your sleep to your relationships – and it can often feel like there’s no way out. But even if things feel hard right now, there are steps you can take to improve your situation and feel more in control.
This guide explains why debt causes anxiety and how to deal with debt stress by taking small steps, such as talking to someone you trust or tracking your wins. It also outlines the help available to you and how to move forward even if you’re unsure where to start.
Why debt can cause anxiety
Debt and anxiety are often closely linked. If you’ve missed payments, are avoiding letters, or feel sick when the phone rings, it’s completely understandable. These are common signs of stress from money problems, and they can build over time, especially if you’re trying to manage it all alone.
When bills keep arriving or creditors demand payments you can’t afford, your mind can go into overdrive. You might start to imagine worst-case scenarios, like legal letters, visits from bailiffs, or losing your home. Feelings of shame or self-blame are also common. But financial difficulty can happen to anyone, through job loss, illness, rising costs, or a sudden change in circumstances.
Understanding that you’re not alone and that your situation can be improved is the first step toward feeling better. If you’re experiencing persistent feelings of anxiety, it’s important to seek advice and support from a healthcare professional.
Spotting signs of financial stress
You might not realise how deeply money worries are affecting you. Debt stress can show up in many ways, including:
- Trouble sleeping or staying asleep
- Constant worry or feeling panicked
- Withdrawing from family and friends
- Avoiding letters, calls or emails about bills
- Feeling hopeless about the future.
If any of these sound familiar, you’re not failing – you’re dealing with pressure that many people would find difficult.
Small steps that make a big difference
When things feel out of control, it’s easy to freeze. But tackling one small thing at a time can help you build confidence and momentum.
Start by:
- Opening your letters
Choose just one recent letter to open, preferably the most recent. Write down who it’s from, how much is owed, and whether there’s a deadline. If that’s all you do today, it’s still a step forward.
- Making a list
Write down all your debts, including who you owe, how much, and the minimum monthly payments. This can feel difficult, but it gives you a clear picture of where you stand.
- Prioritising essential bills
Some payments carry more serious consequences if missed. These are known as priority debts, such as rent, council tax and energy bills.
Need time to think? Breathing Space might help
If you need time to get organised, the government’s Breathing Space scheme could help. Also known as the Debt Respite Scheme, it gives you temporary protection from most types of creditor action – including contact, court proceedings and added interest – for up to 60 days.
To access Breathing Space, you must apply through a registered debt adviser. During this period, your creditors can’t chase payments, giving you time to work with a professional and decide the best way forward.
Breathing Space isn’t a debt solution but it can give you the breathing room you need to review your options, gather paperwork, and plan your next steps with less pressure.
How to reduce the impact of stress from money problems
You don’t need to ‘stay strong’ or deal with everything on your own. Managing debt stress involves looking after your wellbeing as well as your finances.
Here are some simple ways to support yourself while you take action:
- Talk to someone you trust
Whether it’s a friend, family member or partner, letting someone know what you’re going through can help lighten the emotional load.
- Stick to a routine
Try to keep regular sleep, meal and movement habits even when it feels hard. A bit of structure can help you feel more grounded.
- Set aside worry time
If thoughts about debt keep taking over, try giving yourself 15 minutes a day to think about money. When thoughts arise outside that time, gently remind yourself you’ll come back to them later.
- Avoid big financial decisions
If you’re feeling anxious, now may not be the best time to make major money changes (like borrowing more or switching financial products). Focus on stability and clarity first.
Rebuilding your confidence
Debt stress can leave you feeling powerless but taking action, even in small ways, can start to restore your sense of control. Here’s how to build confidence as you go:
- Track your wins
Did you make a call? Open a letter? Talk to someone? Celebrate each step, no matter how small.
- Focus on progress, not perfection
Some days you’ll do more than others. That’s normal. The important thing is that you’re moving forward.
- Remember it’s not forever
With the right support, debt can be managed or even resolved. It may take time, but you don’t have to stay stuck where you are.
What to do if you’re in crisis
If your financial stress is affecting your ability to cope, or you’re having thoughts of harming yourself, seek support immediately. Contact your GP or call Samaritans on 116 123 – available 24/7 for free.
You are not alone, and you deserve help with both your money worries and your wellbeing.
Your next steps
Whether you’ve been dealing with debt and anxiety for a while or are just starting to feel overwhelmed, it’s never too early – or too late – to get debt advice and support. You can visit MoneyHelper for free, impartial guidance before making any decisions.
2 in 3 of customers surveyed here at MoneyPlus said they felt less stressed after taking a debt solution.* Get in touch with us today to explore possible debt solutions.
*MoneyPlus customer survey, 366 respondents, May 2025
