Money and depression

When you’re living with depression, everyday tasks can feel overwhelming – and money management is no exception. Low motivation, reduced energy, or difficulty concentrating can make it even harder to keep track of spending, pay bills on time, or tackle debt. In turn, these financial challenges can cause additional stress, creating a cycle that can feel difficult to break.

If you’re feeling depressed about money, you’re not alone, and there is a clear way forward. This guide explores how depression can affect your financial habits, and offers realistic, supportive and actionable steps to help you feel more in control.

In this guide:

• How depression can affect your finances
• Why money worries can make depression worse
• Practical steps to manage money while living with depression
• Organisations that can help with money and depression 
• Talking about money and depression
• Key takeaways

How depression can affect your finances

Depression isn’t just a mental health condition. It can affect how you think, pla,n and act when it comes to financial issues. You might experience:

• Difficulty keeping up with bills: If opening letters or logging into online banking feels really overwhelming.
• Impulsive spending: Buying things to temporarily lift your mood, then feeling guilty about it afterwards.
• Avoidance: Putting off money decisions because they feel too stressful.
• Lack of energy: Making it harder to shop around, cook at home, or review expenses.

Not everyone who is affected by low mood may struggle with spending or money management. But some of these challenges may lead to issues such as missed payments, growing debt, or difficulty saving money. All of which may intensify feelings of financial depression.

Why money worries can make depression worse

Financial pressure is a well-known trigger for stress and low mood. When you’re already struggling emotionally, money problems can:

• Increase feelings of hopelessness or shame
• Limit social activities, which can increase isolation
• Cause arguments or tension in relationships
• Lead to reduced self-esteem and confidence

This is why addressing both your mental and financial wellbeing is so important. Focusing on one while ignoring the other can make progress harder to sustain. You might feel like you’re making progress in one area, but leaving the other untouched may risk further problems down the road.

Practical steps to manage money while living with depression

You don’t need to fix everything at once. Even the smallest changes can help break the cycle between money depression and financial stress.

1. Start small and remove the pressure

Instead of aiming to overhaul your finances in one day, choose one manageable task – such as checking your bank balance or listing one recurring bill – and remember to give yourself credit for each small step.

2. Use gentle budgeting tools

If spreadsheets feel overwhelming, start with simple budgeting methods like the 50/30/20 rule or use a budgeting app that gives clear, visual overviews without judgement. Our guide on budgeting made simple is a great place to start and is full of quick wins that can really help.

3. Automate where you can

Setting up direct debits for regular payments can help to remove the mental load of remembering due dates. You could also automate small transfers into a savings account to build up a financial cushion over time.

4. Seek tailored financial advice

If debt or missed payments are part of the picture, free and confidential advice is available from:

• StepChange: Debt management and repayment plans
• Citizens Advice: Guidance on managing money and claiming benefits
• MoneyHelper: Tools and resources for financial planning
• National Debtline: Expert support for debt challenges

5. Combine financial and emotional support

Addressing only one side of the issue can sometimes leave you feeling stuck. Seeking help for depression alongside financial advice increases the chances of lasting change. You might:

• Contact your GP or explore NHS mental health services
• Speak to Mind, the national mental health charity, for practical advice and peer support
• Call Samaritans on 116 123 for free, confidential listening at any time of day or night

Organisations that can help with money and depression

Here’s a quick reference list of trusted places for support:

For money worries

• StepChange
• Citizens Advice
• MoneyHelper
• National Debtline

For mental health support

• Mind: Information and practical tools for managing depression
• Samaritans: 24/7 listening service
• NHS Mental Health Services: Free support through your GP or self-referral

You’ll find more useful contacts on our third-party help and support resources page.

Talking about money and depression

Living with depression can make you feel isolated, but sharing your concerns can really lift a weight off your shoulders and start the healing process. You might not feel like you want to talk about financial issues or mental health, but it can be a huge help.

• Pick someone safe: Whether that’s a friend, family member, therapist or financial adviser, make sure you trust them and that you can speak in confidence.
• Explain what’s happening in simple, honest terms: You don’t need to apologise, just be as open as you can be.
• Set clear boundaries: You don’t have to share every detail at once.
• Ask for practical help: This might involve asking someone you trust to join you when opening letters, help with a budget, or attend appointments together. The old cliché of a problem shared is a problem halved is a cliché because it’s often true.

You may also find online communities and forums helpful for connecting with people who understand both money and mental health challenges. Sharing experiences and understanding that many other people face similar issues to you can help offer perspective and inspire hope.

Tackling money issues and depression: Key takeaways

As you can see, depression and financial issues can be closely linked, and it’s normal for managing them both to feel extremely challenging at times. But the earlier you make a plan and get support, the better – whether that’s taking steps to better support yourself, or reaching out for help.

• Depression can affect financial habits in many ways, from overspending to avoiding important tasks.
• Money worries can make depression symptoms worse, so it’s important to address both together.
• Start small, use simple tools, automate priority payments, and seek combined financial and mental health support to help you on your journey.
• There are plenty of free and independent third-party support resources out there that are here to help.

For more insights and support, explore our guides on money and anxiety, how to deal with financial stress and what benefits could I claim?

Remember: your current situation is not a true reflection of your worth. Progress is possible, one step at a time.