Can’t sleep for money worries? How debt can affect sleep and what can help

If you’ve ever laid awake at night worrying about money or debt, you’re not alone.

Financial stress can have a devastating effect on both mental health and sleep. For many people, worries about bills, repayments or rising costs can make it difficult to switch off at night.

In fact, sleep problems and mental health struggles remain the most common impacts of financial stress, affecting around seven in ten of our customers seeking debt advice. 

Sleep plays a vital role in both mental wellbeing and physical health. When it’s disrupted, it becomes harder to concentrate, think clearly and solve problems, which can make dealing with financial difficulties feel even more overwhelming.

Unfortunately, this can create a vicious cycle. Debt can trigger or worsen mental health conditions such as stress, anxiety and depression, which in turn affect your ability to sleep.

According to the NHS, the most common causes of insomnia are stress, anxiety and depression, all of which are closely linked to financial worries and debt.

Money worries can also cause physical symptoms such as headaches, muscle tension and a racing heartbeat, which make it harder for your body to relax.

In some cases, stress keeps your body in a state of ‘fight or flight’, known as hyperarousal. When this happens, your mind stays alert and your body struggles to wind down, even when you’re exhausted.

Bhevesh’s story 

Bhevesh began to struggle financially after moving away for a new job. What was initially a 12-month contract quickly became uncertain when lockdown began. He was placed on furlough, and the shorter follow-up contracts he had hoped for came to an end.

“That’s when it all kicked in, and my savings started to run out,” Bhevesh explains.

The impact of his financial worries was multi-layered. The first concern was paying bills, but the stress soon affected other parts of his life as well, including his quality of sleep.

“It was affecting my sleep, not on a daily basis, but it does affect your sleep,” he says.

At the time, Bhevesh wasn’t aware that organisations such as Money Wellness could offer support.

“I had never done such a detailed money exercise before,” he says. “There were so many different options available to me, and there was no pressure.”

Reflecting on his experience, Bhevesh encourages others facing similar challenges to seek help.

“The advice I’d give to anybody in a similar situation is that it’s worth getting it off your chest and allowing someone else to hear your challenge.”

What can help if debt is keeping you awake

If money worries are affecting your sleep, things can feel overwhelming. But small steps can help you regain some control.

Improving sleep while tackling financial stress is often a gradual process, but the following strategies can make a difference.

Establish a routine

The mental health charity Mind recommends developing a regular sleep routine.

Try going to bed and waking up at roughly the same time every day. A consistent routine helps your body recognise when it’s time to sleep.

If you struggle to fall asleep, it can also help to only go to bed when you feel tired, while still getting up at a regular time in the morning.

Do something relaxing before bed

Screens, TV, or scrolling through social media, can make it harder to wind down.

Instead, try something calming such as:

• reading a book
• listening to relaxing music
• gentle stretching or breathing exercises

Creating a quiet wind-down routine can signal to your brain that it’s time to rest.

Make your bedroom a relaxing space

Small changes to your environment can improve sleep quality.

You might find it helpful to:

• reduce light and noise in the room
• keep the room slightly cooler
• use earplugs or blackout curtains
• adjust bedding or pillows to something more comfortable

Don’t force yourself to sleep

If you’re lying awake for long periods, trying harder to sleep can actually make things worse.

Mind advises getting up and doing something relaxing until you feel sleepy again, rather than lying awake feeling frustrated.

Keep a sleep diary

A sleep diary involves recording when you go to bed, when you wake up and how well you sleep.

Over time, it can help you spot patterns, such as caffeine intake, stress or late-night screen use, that might be affecting your rest.

Look after your physical health

Healthy daily habits can also improve sleep.

The NHS recommends:

• eating balanced meals
• exercising regularly
• avoiding alcohol, smoking, tea or coffee within six hours of bedtime

Face your finances

When debt feels overwhelming, it can be tempting to ignore it. But avoiding letters, emails or bills often makes the problem worse.

Instead, try to:

• open and review your accounts
• write down what you owe
• create a realistic budget

Breaking the situation down into manageable steps can make it feel less daunting.

Talk to someone

Money worries can feel isolating, but you don’t have to deal with them alone.

Talking to a trusted friend, family member or your GP can help reduce feelings of shame and stress.

If your mental health is struggling, organisations such as Mind, Rethink Mental Illness and Samaritans offer support.

And if debt is affecting your wellbeing, getting advice from organisations like Money Wellness can help you understand your options and start finding a way forward.