5 signs someone you love is having money problems - Creditfix (2024)

Debt Awareness Week takes place from March 21-27 this year and with the rising cost of living forcing a growing number of people into financial hardship, there is no better time to start talking about money.

It can be easy to assume that your loved ones are free from money problems, but debt is almost always closer to home than you might think.

With 50% of the adult population of the firm belief that the topic of personal finance should remain strictly off limits and 10% reluctant to admit they are falling into debt, this can make it difficult to know whether someone close to you is experiencing money problems. This can make it even more difficult to know how to broach the subject.

By knowing what signs to keep an eye out for, however, you can provide some much-needed advice and guidance or just lend a sympathetic ear if and when you can.

Here are five signs someone you love is having money problems.

1. A sudden change in spending habits

If you have noticed a loved one spending more or less money than usual all of a sudden, this may be a natural response to money problems bubbling under the surface.

They may feel as if they have lost control of their finances, for example, and resorted to overspending as a means of masking mounting debts or to cover up the fact that they are heading for financial trouble. This is only likely to lead to them living beyond their means and racking up further debt as a result.

A reluctance to spend money, on the other hand, may point to a fear of falling into debt despite an adequate income or substantial savings. This may also be indicative of money problems that are slowly but surely spiralling out of control.

2. Declining physical or mental health

If someone you love is suffering from declining physical or mental health, there will almost always be a larger problem at play and money could be a major contributing factor.

This usually materialises in the form of rapid weight loss or gain as well as a heightened sense of generalised anxiety when it comes to conversations involving finances.

You may have also noticed that they have become jittery or reclusive by dodging social events altogether to avoid splitting the bill or answering any uncomfortable questions. It is also a common trick to fabricate an explanation ahead of time to pre-emptively evade suspicion.

3. Avoiding correspondence

The most apparent sign that someone you love is having money problems is avoiding correspondence. This can be as obvious as unopened envelopes littering the kitchen table or as subtle as them dismissing every letter that flies through the letterbox as junk.

With bills and invoices now sent electronically as well as physically, no longer checking their phone or laptop may also hint at money problems.

This will become increasingly noticeable as they slowly but surely make a conscious effort to avoid all forms of communication and, in doing so, cut themselves off from the outside world.

4. Cancelling plans

If you have noticed that a friend or family member has began cancelling plans on a regular basis, they may be doing so in an attempt to avoid spending money.

They may agree at first but cancel at the last minute or make an excuse to avoid socialising altogether out of embarrassment of comparing their financial situation to that of their peers.

Social settings can be difficult for people struggling with money problems. If someone you love has gone from being a social butterfly to a social recluse, this could be due to financial hardship.

5. Refusal to talk about money

It is completely normal to feel uncomfortable whilst discussing your personal finances with a stranger or even a loved one. If someone you love refuses to talk about money or gets nervous when the topic is so much as briefly mentioned, however, this can confirm your suspicions and point to a larger problem.

They may act sheepish or change the subject to avoid having to divulge any details relating to their personal finances or poor money management skills.

This can also lead to them unintentionally damaging or severing relationships with their loved ones if the subject of money is frequently brought up in social situations.

It can be difficult to know where to turn if you think someone you love is having money problems. By leading with a gentle and understanding approach, however, you may be able to diffuse the situation before it escalates and encourage them take the first step towards safeguarding their financial future.