Financial stress can impact anyone at any time, particularly if someone’s circ*mstances change unexpectedly - but talking about money difficulties remains something that most people find too embarrassing and difficult…
Financial stress can impact anyone at any time, particularly if someone’s circ*mstances change unexpectedly - but talking about money difficulties remains something that most people find too embarrassing and difficult to talk about.
If you’re worried a friend or family member maybe be stressed and struggling to get on top of their finances, there are some telltale signs that you can look out for. Individually, each of these signs may not be a problem - but when you recognise several of them in combination, it might be time to offer help.
The person seems to be living beyond their means
If there’s someone you know who always has the latest designer labels or expensive electronics, and you know they don’t have the income to afford these things, that could be a sign of a growing debt problem.
They’ve had a recent life event that has reduced their income or increased their expenses
Debt problems can often begin to spiral after a major change in income or spending. Examples of life events that could trigger this include getting divorced, a death in the family, being made redundant or having a new baby.
They are behaving secretively or avoiding talking about money
This can be a hard one to spot, as people in problem debt will often go to great lengths to hide their spending. But if someone regularly changes the subject when you talk about financial topics, this could be a warning sign.
They seem anxious, withdrawn or depressed
Like any other source of stress, money worries can lead to anxiety and depression. If the person seems not quite themselves, a debt problem could be a contributing factor. Also look for other common signs of depression, such as sudden weight loss or weight gain or having difficulty sleeping.
There’s been a change in their spending habits
You might notice that the person stops spending on things they usually enjoy, like going out with friends. This could be an indication that they’re struggling to meet debt repayments. Alternatively, you might notice that they’re spending on credit like there’s no tomorrow, with no plan for how they’re going to repay the debt. This is a sign they’re in denial that there’s a problem.
How you can help
Identifying someone with a debt problem is tricky and trying to persuade someone to open up about to a debt problem is even harder.
Try to approach the conversation gently and tactfully, making sure your tone is not judgmental. You might like to mention any money problems you have had yourself in the past, to help them feel at ease.
Once you’ve managed to get a conversation going, it’s important to try and make sure that person feels they’re not alone and their situation is not hopeless.
Encourage them to seek some free debt advice. There’s plenty available. Try MoneyTalks or search for ‘debt advice’ in the Family Services Directory. www.nowwearetalking.org also has some great resources and advice for starting that difficult conversation.
Studies show that most people who seek debt advice find that they immediately feel better about their situation, and wish they had asked for help sooner.
What should you do if you’re struggling with your Harmoney loan?
- Talk to us as soon as possible, whether your circ*mstances change overnight, or you can see you might miss an upcoming payment. Just as our personal loans are personalised to each individual, we can assess circ*mstances on a case-by-case basis.
- Depending on your circ*mstances you may qualify for Unforeseen Hardship. This means you are unable to reasonably keep up your payments (this may be due to illness, loss of employment, the end of a relationship or other reasonable cause) and you can apply to Harmoney to vary the terms of your loan.
- If you have taken Payment Protect on your loan, you may be eligible to have some of your repayments waived if your circ*mstances have changed. It’s important to contact us as soon as possible after a change in circ*mstances to make a Payment Protect waiver claim.
- If you have any concerns about making repayments, just call one of our friendly customer service team on 0800 427 666 or customerservice@harmoney.co.nz; we’re open 9am - 6pm, 7 days a week.
Other articles you might like:
How to talk to your partner about money
Managing your money in your 30s and 40s
What is debt consolidation?
FAQs
Feeling like you can't keep up with your finances or that you're losing control over your money is a common symptom of financial stress. This might be falling behind on bills, not having a clear understanding of your financial situation, or feeling powerless to make changes.
How do you know if someone is struggling financially? ›
That said, there are a few common signs that someone you care about is struggling with debt.
- Receiving collection letters or phone calls. ...
- Spending doesn't match income. ...
- Becoming evasive about finances. ...
- Continually asking to borrow money.
Feeling like you can't keep up with your finances or that you're losing control over your money is a common symptom of financial stress. This might be falling behind on bills, not having a clear understanding of your financial situation, or feeling powerless to make changes.
What are the characteristics of financial stress? ›
Individuals who experience financial distress may find themselves in a situation where their debt servicing costs are much more than their monthly income. These debts or obligations include items such as home or rent payments, car payments, credit cards, and utility bills.
What is the root cause of financial stress? ›
Sometimes, financial stress is caused by factors outside of your control. Other times, it can be the result of poor financial choices, lack of financial knowledge, or somebody else having control of your finances.
What does financial anxiety look like? ›
The signs that you might be experiencing financial anxiety include: Rumination about your financial situation regardless of your ability to cover bills. This may interrupt your sleep, or distract you from other aspects of your life. Fear that your financial situation could change for the worse.
Should you date someone who is not financially stable? ›
No, many people find that money issues are a deal breaker.
It's okay if a guy's money problems give you pause. If he's not financially stable and he shows no signs of changing his habits, take that into account when you're deciding whether or not to pursue a serious relationship with him.
What does financial trauma look like? ›
Individuals experiencing financial trauma may find themselves constantly thinking about their financial situation, obsessing over every detail and potential negative outcome. This preoccupation can lead to increased stress and anxiety and difficulty focusing on other aspects of their life.
What is the biggest financial stress? ›
Inflation remains the top financial stressor impacting Americans: More than half of Americans (61%) say inflation contributes to their financial stress, up two points from March and holding the top spot as the primary financial stressor.
How do you help someone with financial stress? ›
Here are a few tips:
- Try to create time for the conversation. ...
- Gently let them know that you care about them, and want to help.
- Listen and be curious about their experience. ...
- Sometimes, it can help to open up about your own experiences, which can 'give permission' to your friend or family member to also share.
It's also getting harder and harder for many of us to pay for essentials like food, bills, rents and mortgages. This level of financial stress is similar to what was reported during the pandemic – with 57 per cent of people struggling in 2020 and 55 per cent in 2021.
What is financial strain? ›
Financial strain represents a perceived inability to meet financial needs and obligations and is associated with poorer health outcomes.
Why are people stressed about money? ›
Why is financial stress so common? Finances play a significant role in our daily lives, from being able to afford food and housing to achieving our future goals. Financial stress can come from a number of related factors, including paying bills, managing debt and having enough savings.
How does financial stress affect people? ›
They can lead to relationship problems, physical health problems and mental health issues, such as depression or anxiety.
Is anxiety a symptom of financial stress? ›
Feeling beaten down by money worries can adversely impact your sleep, self-esteem, and energy levels. It can leave you feeling angry, ashamed, or fearful, fuel tension and arguments with those closest to you, exacerbate pain and mood swings, and even increase your risk of depression and anxiety.
Can financial stress make you sick? ›
Recent studies have linked money worries to anxiety and depression, pain and inflammation, heart disease, high blood pressure, headaches, insomnia, ulcers, back pain, arthritis, and asthma, among other ailments, as well as a higher risk of disability and early death.
What to do if someone is struggling financially? ›
- Give a Cash Gift.
- Make a Personal Loan.
- Co-Sign a Loan.
- Create a Bill-Paying Plan.
- Provide Employment.
- Give Non-Cash Assistance.
- Prepay Bills.
- Help Find Local Resources.
It will show up on their credit report. You can ask for a copy if you have a legitimate reason to ask for one. Bankruptcy court records are public information - if you know where the person resides, you can also check the court records and get a copy through FOIA (Freedom of Information Act).
Why do people struggle financially? ›
The high cost of living, wealth inequality and job market uncertainty have all contributed to financial vulnerability, even among wealthy families. Concerns about personal debt, including credit card, auto loan and medical debt, are significant sources of financial stress.
