Sainsbury's warns against letting 'money fear' take grip

Around 6% of the adult population, suffer from ‘Money Fear', a condition that sees many purposefully ignore the state of their finances, according to research from Sainsbury's Bank.

The Bank is concerned by this and urges those of us who are prone to burying our heads in the sand not to ignore financial matters as not keeping an eye on things can lead to problems later.

The Bank, which aims to make all of its products easy to understand, has added a section to its website that offers hints and tips as well as a jargon buster in a bid to make finance a little less intimidating, available at sainsburysbank.co.uk/moneymadesimple.

Kevin Barrett, Head of Channels, Sainsbury’s Bank said: “Our research indicates that nearly 2 million people refuse to discuss their finances with their partners because they're worried about how they'll react. We also found that 11% of the population claim that at some stage, they have left their bank account and credit card statements unopened. Money Fear is clearly a very real issue.

"Our advice to people suffering from this condition is not to put your financial management off, problems can arise if you don't keep an eye on things. For example without regularly monitoring your statements you won't be able to identify issues such as identity theft. Take control of your finances now, look at your expenditure, plan your budget and by all means, seek advice or counselling if you need to."

Sainsbury's Bank offers the following on tips to avoid 'Money Fear':

Don’t ignore your finances. One of the biggest challenges is to face up to your concerns before they become a problem.

Get into the habit of monitoring bank statements.

Don't be put off by financial jargon – pick up the phone to your Bank or visit sainsburysbank.co.uk/moneymadesimple

Prioritise your debts.

Plan out a budget and stick to it.

Look for ways to reduce or better manage your expenditure: Could you cut back on eating out or shopping, for example? Do you have the best credit card or most suitable loan?

If you have a number of creditors and are finding it difficult to make your repayments, consider consolidating all your debts under one loan. This can help reduce the amount of money you are paying each month and make the process of repaying your debts simpler

If you are really worried about your finances, consider taking professional advice. The National Debt Helpline (tel: 0808 808 4000), Credit Counselling Service (tel: 0800 138 1111) and the Citizens Advice Bureau (contact your local bureau office by visiting adviseguide.org.uk) can all provide free advice.

Some of the implications of worrying about your finances are indeed concerning. The Bank’s research indicates that over the past 12 months, 3.27 million people claim that it has affected their physical health, and 1.87 million believe it has resulted in them suffering from mental health problems. Some 9% of the adult population (4.1 million people) said that worrying about their finances had adversely affected their relationship with their partners.

Dr Jeremy Adams, Psychologist, said:”Anxiety resulting from worries about finances can be an unfortunate side effect of modern living. Extended periods of stress and anxiety can potentially cause harm to one’s physical and psychological health. As such people should make use of tools available to them to deal better with their worries.

“It is important to take control of your perceived problems, like anxiety about money, by adopting positive steps such as monitoring your spending, or seeking professional advice. In addition to this, frequent physical exercise, adequate sleep, and some sort of regular stress management, like meditation or relaxation exercises, can all reduce a person's worries.”

On a location basis, the South East and Scotland have the highest percentage of people that appear to be afflicted by 'Money Fear'.