6 signs someone you love is having money problems (2024)

Finding out that a loved one is having money problems is never easy, but you can sometimes spot the signs of financial difficulty and help them seek help before it spirals out of control. Here are 6 signs to look out for

A change in spending habits

While many of us modify our spending habits while we’re saving for a summer holiday or cutting costs in the run up to Christmas, a sudden and unprovoked change in spending could be a sign that someone is in financial trouble. Pay attention when a loved one starts restricting their spending at the supermarket, stops buying things that were once a regular part of their monthly budget, or pauses their pension contributions without explanation. However, it’s worth noting that a change in spending habits could also be a sudden increase in spending. A loved one in financial difficulty might start splashing the cash to cover up their situation and relying more on credit cards to fund a lavish lifestyle.

Borrowing money

Borrowing money from a friend every now and again is common in a close relationship. You might offer to pick up the tab at dinner or lend them £10 to buy lunch at the office. However, if you notice your friend or family member is starting to regularly borrow from others, they could be experiencing financial hardship. The loan amounts will typically start small but can easily stack up over time and cause a rift in your relationship if they remain unpaid. Your loved one may be borrowing from friends and family, but they may also be taking out more formal loans from a bank or credit card company too.

Physical or mental health issues

One of the biggest financial warning signs to look out for is a loved one that starts experiencing a decline in physical or mental health. Debt can impact your mental health, which in turn can contribute to physical problems. They may be showing symptoms of generalised anxiety such as rapid weight loss or gain, tension headaches, sleeping problems, or difficulty getting out of bed in the morning. You may also notice that they’re starting to self-medicate; they may start drinking more alcohol, eating comfort food, or relying on over-the-counter meds to get to sleep. If you notice that someone’s health is failing for no obvious reason, stress could be the underlying cause.

Not opening letters or emails

If your hallway is being filled with an ever-growing pile of unopened letters, your loved ones may be experiencing financial issues. It’s understandable that someone who is struggling with debt might find the situation all to overwhelming to face head on and try to ignore the problem instead. However, many creditors now also contact people via phone, email, or text, so it’s worth looking at how your loved one behaves around their electronic devices too. If you notice that they’ve started to avoid checking their phone or their unread email count is getting out of control, it might be a sign they’re finding it hard to keep up with their financial responsibilities.

Cancelling plans

Loved ones who are struggling with their finances might start to withdraw and avoid socialising. This can be for several reasons; they might be trying to cut their spending by staying home or feel ashamed of their financial situation. Take note if the social butterfly of your group suddenly starts cancelling plans at the last-minute or only turns down an invitation when they find out you’re planning to go to one of the pricier restaurants in town. If you suspect your loved one is having money problems, you could suggest free alternatives to avoid them feeling isolated: meeting up at home or going for a walk in the park are both budget-friendly alternatives to more costly plans.

Not talking about money

Money is a touchy subject at the best of times and many of us feel uncomfortable about discussing our finances openly. But if your close friend, partner, or family member refuses to talk about money at all, that could be a financial warning sign. You might notice they get nervous when the topic comes up, walk away from financial conversations, or immediately change the subject. They might also become more secretive about their spending. Try to notice if their attitude to money has changed; if they’ve previously been open with you about their financial situation but now shut down whenever money is discussed, they could be experiencing difficulties.

What can I do if someone I love is in financial trouble?

If you suspect that someone you love is in financial trouble, it can be hard to know how you can help. It’s a challenging situation, especially if their problems have started to harm their physical and mental health or are affecting your relationship. When warning signs start emerging, but you aren’t certain there’s a problem, try to introduce the topic in a gentle and understanding way. Make it clear that you aren’t going to judge them or feel differently about them, no matter what their financial situation looks like.

If they’re struggling, you may want to encourage them to seek expert financial advice. Speaking to an impartial debt professional can sometimes be easier than talking with a friend or family member. It can also help them understand their debt management options and explore solutions that may improve their situation over time.

If your loved one is having money problems, our friendly team of experts are here to help. Get in touch by calling 0161 8260 585 or send us a message here