The Root of Common Money Problems and How to Manage Them

If a person has money or financial issues, it can be a significant source of stress. Money problems, such as debt or poverty, can negatively affect everything from physical and mental health to family life and relationships.

There are several types of money and financial issues, including:

• High debt

• Poverty

• Foreclosure, bankruptcy, or loss of assets

• Increase in financial responsibilities, such as costs needed to care for a family member

• Compulsive gambling or spending

While money problems are relative to an individual's financial situation, beliefs around money, and other factors, anyone may become subject to the overwhelming self-criticism and negative feelings that financial struggles cause. This is because not all financial problems or crises - such as an unexpected loss of income or credit card fraud - are within one's control.

Still, several potential issues only occur due to personal choices, such as their career choices, impulsive spending or overspending, and lack of financial planning.

In either case, financial issues are strongly connected to mental health issues. Individuals with debt and serious financial issues are at a higher risk for high anxiety, depression, alcohol or drug dependency, psychotic issues, and suicide.

Therapy can help if you are facing financial strain. A therapist will begin by assessing whether unhealthy attitudes or spending habits are present - such as compulsive shopping to fill an emotional need - and get to the root cause. Identifying this need is the first step toward helping you develop better coping skills to break your unhealthy habits and, ultimately, improve your mental and financial health.