One in three say cash woes affecting mental wellbeing

One in three (33 per cent) people feel their current financial situation is having a negative impact on their mental wellbeing, a survey has found.

A similar proportion (31 per cent) said their finances are negatively affecting their emotional wellbeing, according to the research for HSBC UK.

The release of the research coincides with Debt Awareness Week (March 18-24).

Nearly one in four (24 per cent) people who have taken out non-mortgage credit said that covering everyday living expenses was the main reason for their most recent loan. A fifth (19 per cent) said that an unexpected expense was behind their most recent borrowing.

Credit cards were the most common forms of borrowing among people surveyed, followed by personal loans, overdrafts and buy now pay later schemes. Some people had also taken out informal loans from friends or family.

Only around half (51 per cent) of borrowers said they know the interest rates on their current debts.

One in nine (11 per cent) had combined their debts into one place to make them more manageable.

Six in 10 (60 per cent) people surveyed said that they are confident in their financial resilience and ability to handle unexpected financial expenses in the next 12 months. Just over half (52 per cent) reported feeling confident that they can achieve their financial goals for the next year.

Clearing debt was the top longterm financial goal, followed by saving up for a big purchase other than a house, retiring early, becoming mortgagefree and saving for a house.