Can financial problems cause depression?

Live Well Diary Team

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financial problems cause depression
This blog will delve into the topic: financial problems cause depression.

It’s unfortunate when financial struggles coincide with feelings of depression. Stress tends to worsen the symptoms of depression, and financial problems can often contribute to that stress.

Financial difficulties like debt and not having money to cover expenses or purchase items can give us feelings of stress, anxiety, shame and anger. These feelings may make one question their self-worth or feel like a failure.

Financial problems may also affect your family relationships and friendships, and who notice the changes in your behaviour.

It can be hard to remain happy and hopeful when money is tight.

Navigating life with financial constraints can make us not have a positive and hopeful outlook. The emotional toll of tight finances seeps into various aspects of well-being, making it difficult to find happiness amid financial stress.

Constantly worrying about difficulties can eventually turn into a long-term stressor, greatly affecting one’s well-being. The prospect of a bleak financial future often leads to ongoing pessimistic thoughts, resulting in a mental state characterised by anxiety and worry.

As financial concerns take centre stage, the mental toll intensifies, leading to a continuous cycle of contemplating how to make ends meet. This ongoing mental strain not only induces stress but can also pave the way for the onset of depression. The weight of financial worries and the constant mental calculations can contribute to hopelessness and despair.

Recognising that financial stress can affect us tremendously is crucial to breaking free from this cycle. Getting help from loved ones, friends, or experts can help deal with financial difficulties. Incorporating techniques to handle stress, like practising mindfulness, managing finances wisely and concentrating on attainable objectives, can aid in restoring an optimistic outlook.

There is no light at the end of the tunnel.

Financial hardships can often feel never-ending. It leaves a sense of despair and uncertainty about the future. It’s downright frustrating and can be incredibly irritating. These difficulties give rise to a feeling of chaos. And often gives the impression that everything is unravelling.

Getting out of bed, especially in the morning, becomes a real struggle when thoughts about paying rent or buying groceries next week are looming. The added element of uncertainty brings a level of complication, leaving you questioning the duration of this challenging situation. Will it endure for a month, two months, six months or perhaps a year?

It’s a temporary phase that, with hard work and effort, will eventually pass. Well, even though it may seem like there’s no hope in sight at this moment, keep in mind that it’s a passing darkness, and circumstances can shift through resilience and persistence.

financial problems cause depression

Can financial stress can be a significant cause of depression?

Yes, financial stress can indeed be a significant contributor to depression. The burden of debt not only triggers stress and anxiety but, in severe instances, can escalate to the point of inducing thoughts of suicide.

Dealing with financial challenges frequently places individuals in situations where they feel hopeless and helpless. These feelings, combined with the burden of problems, can act as triggers for the onset of depression.

Money problems can cause tension in relationships.

Financial problems also impact relationships with familymembers, friends and colleagues—and the consequences can be devastating for both parties involved if left unresolved for too long. In some cases, financial troubles even lead to divorce.

You might experience a sense of having less to contribute to your partner or family members. You feel they will not fully comprehend this situation.

If you’re concerned about repaying loans or managing bills, you may also experience stress and anxiety regarding finding solutions to these issues.

If your financial situation is causing strain in relationships, it’s advisable to have a conversation. Explain clearly, and don’t forget to express gratitude for their support.

Ways to prevent depression related to money issues

If you are experiencing difficulties that cause stress find ways to manage these emotions to stop them from overwhelming you.

  • First of all, don’t ignore the money problem.
  • Talk about your concerns with someone close who is willing to listen without judgment. Maybe a good friend or an immediate family member whom you trust implicitly.
  • Try incorporating mindfulness practices into your routine, like spending a few minutes each day on breathing exercises or meditation. Start with five minutes. Gradually extend the duration until these practices become essential to everyday life.
  • Watch and analyse spending habits and change if anything can be done differently or tweaked. Some bills may be lowered or eliminated, or there’s an area where spending could be cut back so that more monthly money is available for other expenses like groceries or entertainment.
  • Try not to compare with others who seem to have more than enough money for everything in life. This will only breed regret and make things worse for both parties involved because neither person will feel good about themselves and realise how far apart their lifestyles are.
  • When there have been changes in your financial circumstances, and you face difficulties with your mental well-being, you may want to contact a trusted professional, such as a doctor and inform them about it. They can provide support in guiding you through the obstacles in your life.


The relationship between financial problems and depression is undeniable. One’s mental well-being can be adversely impacted by the weight of strain, especially when coupled with the difficulties of indebtedness and economic uncertainties. The toll it exacts on one’s well-being can be significant enough to result in high levels of stress, anxiety and, in severe instances, depression.

Recognise the signs of distress and seek support whenever needed. Whether through professional assistance, community resources, or personal networks, there are avenues to alleviate the emotional burden of financial problems.

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