Mental Health and Wellbeing in Financial Distress
As Melbourne opens up after our extended period of lockdown, the greatest challenge for some is about to begin. Fortunately, we seem to have headed off the COVID 19 health crisis however for many, the financial crisis is about to hit home.
Statistics released by the ATO in their successive Annual Reports dating back as far as 2008 show that there has been a growing number of SME’s with mounting tax debts. This means that even before COVID came to town many SME’s were facing strong headwinds this year. For those businesses already struggling, to then be hit with several months of shutdown, it will be incredibly challenging now that the time has come to reopen. JobKeeper will not alter this. Businesses who were strong pre-COVID will be challenged too.
Managing people in these circumstances can be difficult
Financial difficulties can leave people feeling stressed and anxious. They will need help to chart a course and understand their options: what is possible and what is not. As professional advisors we are all used to crunching the numbers however the numbers are only part of the overall issue and you may find you are faced with being drawn into supporting clients in ways that you are not trained. Be aware of this as it can impact on your own wellbeing.
If you need help dealing with the emotional impact of financial difficulty, or the COVID-19 pandemic, there are resources available.
The correlation between mental health and financial difficulties
This has been an issue that the insolvency and turnaround profession have sadly been aware of for some time. To assist those who may be facing financial distress, ARITA has released an information sheet which covers six things that you can do to take care of your mental health when facing financial distress. Useful resources are also available from AFSA.
In addition, Beyond Blue offers a Coronavirus mental wellbeing support service with information, advice and strategies to help you manage your wellbeing and mental health, including support for small business owners.
Begin resolving financial difficulties
What we have found over our many years of experience, in order to start to resolve the mental health issues caused by financial difficulties, you need to address the cause of the financial difficulties themselves. Getting advice in relation to resolving these should be obtained as soon as possible.
Do not hesitate to contact our office so that we can assist with developing a solution, based on your individual financial circumstances and explain the options that may be available.
Remember that for some, the days and months ahead will be a stressful and uncertain time. None of us should be afraid to ask for help.
If urgent support is needed in relation to mental health, please speak to your local GP or reach out to one of these support services:
For advice in relation to financial stress please do reach out to us.