SOUTH East adults say that their personal or household finances are the most likely factor, from a list of common causes of stress and anxiety, to have a negative impact on their mental health.

That is according to a new survey of over 2,000 people, carried out by insolvency and restructuring trade body R3 and ComRes.

More than a quarter (27 per cent) of South East adults say that their personal or household finances are currently having a negative impact on their mental health –  four per cent of British adults also say the finances of other family members are having the same effect.

Mike Pavitt, chairman of the Southern Committee R3 and a partner at Paris Smith solicitors in Southampton, says: “Much more needs to be done to ensure that people are informed about what their options are when they encounter financial problems so that they can deal with them without unnecessary stress. Improving financial education and financial capability could have a huge, positive impact on the country’s mental health.

“The personal finance landscape is relatively benign at the moment: real wages are still growing and interest rates are low. Yet personal finance concerns still loom large. With inflation set to rise throughout 2017, personal finance pressures are likely to increase.”

“The insolvency regime is there to help people with very serious financial problems resolve their debts and the associated stress and start again financially.

“Unfortunately, there remain arguably unnecessary barriers to people accessing insolvency procedures that could help them. People wishing to enter bankruptcy, for example, typically face paying £680 in government fees before they can access debt relief.

“These fees could be paid over the course of a bankruptcy instead.

“The biggest pinch comes for those in the 35-44 age bracket.

“Many in this age group are paying a mortgage, have children to support, and may even be supporting their parents, too.

“It’s no surprise that it’s this age group

that is most worried about their debts, most likely to struggle to payday, enter an insolvency procedure, and say their finances have a negative impact on their mental health.”

The survey also found that 41 per cent of South East adults say they are worried about their current level of debt while 39 pr cent say they often or sometimes struggle to make it to payday.

Mike's top tips for dealing with debt are:

 1. Acknowledge the problem. Avoiding personal finance problems will only make them worse.

2. Ask for help. Professional advice is readily available and is often free of charge, whether it’s an initial meeting with a licenced insolvency practitioner, or help from the National Debtline, or a local Citizens Advice Bureau.

3. Prioritise the payments of your debts. An advisor, as mentioned above, can help.

4. Budget. Be honest with yourself, identify your essential financial commitments and cut back on luxuries. At the very least, maintain the minimum monthly credit card payments to retain your credit rating while you sort out your finances.

5. Communicate with your creditors. By getting in touch with your creditors at an early stage, you can give them an opportunity to help that might not be there in future.

6. Be transparent. Give full details about your financial situation to both your advisor and your creditors.

7. Take your time before choosing the solution that’s right for you. Don’t allow yourself to be pressurised, and make sure you are taking advice from a regulated professional.

8. Don’t keep digging. Avoid turning to new credit cards or payday loans to plug the gap in your day-to-day finances. This might only make your situation worse.

9. Learn about your options. If you require a formal insolvency procedure, there are a number of options appropriate to different levels of debt. Formal options include Debt Relief Orders (DROs) for smaller debts, Individual Voluntary Arrangements (IVAs), and bankruptcy. It will cost more time and money if you start off in the wrong solution, so make sure you take advice about all the options open to you.