Research from Money Wellness, published ahead of Debt Awareness Week from 16 to 22 March, reveals that while debt may be affecting fewer areas of people’s lives overall, its impact on mental health, relationships and sleep is growing.
The survey of 5,000 customers found that 81% identify money as their main source of stress, a rise from 72% in 2024. Some 87% say they feel stressed most of the time, while 85% say their mental health has directly affected their ability to manage their finances.
The percentage of people reporting that debt touches every part of their life has fallen slightly, from 55% to 50%. However, the data shows that in specific areas the pressure is increasing. Reports of debt affecting relationships have climbed from 23% to 35% between 2024 and 2026, and sleep disruption has grown from 24% to 26% in the same period. Customers describe struggling to meet minimum repayments, feeling anxious about managing their finances, and in some cases not answering calls from numbers they do not recognise for fear of contact from creditors. The stress, for many, has moved beyond a general unease and into something that affects day-to-day functioning.
Sebrina McCullough, Director of External Relations at Money Wellness, said: “Financial stress is often discussed as though it’s a steady background pressure. What our latest data shows is that for many people, it’s becoming more intense and more focused. While slightly fewer customers say debt affects every area of their lives, we’re seeing sharper impacts on mental health, relationships, and sleep. That tells us the pressure isn’t disappearing, it’s concentrating.
“We are also seeing a clear cycle develop. Money worries damage mental health, and poor mental health can make it harder to manage bills, respond to creditors, or seek support. Without help, that cycle can escalate quickly.”
On the positive side, the data shows that seeking support makes a difference. More than two-thirds of customers who received advice from Money Wellness said they felt a weight lift. Over half said they felt less anxious, and 43% reported an improvement in sleep.
“The earlier people seek advice the better, but it’s never too late. No one should feel they have to cope with debt and money worries alone. There is free, confidential support available, and taking that first step can provide immediate relief,” added McCullough.
Money Wellness is urging people to reach out for support ahead of Debt Awareness Week, before financial difficulties become further entrenched.
