Financial Stress & Veterans: How Medical and Combat Costs Impact Mental Health

When we talk about the cost of healing, we often think about time, treatment, and recovery. But for many service members living with chronic illness or injury, healing also comes with a price tag that extends far beyond the hospital bill. The emotional weight of medical or combat-related expenses can quietly shape one’s mental health, influencing everything from daily stress levels to long-term outlook on life.

Whether it’s an unexpected surgery, ongoing treatment, or the cost of rehabilitation after deployment, medical expenses can quickly become overwhelming. For veterans, the situation is even more complex as they navigate the system of benefits, reimbursements, and disability claims, which often becomes a second battle. While resources exist through the VA and other organizations, delayed approvals or coverage gaps can lead to months (or years) of financial uncertainty.

The uncertainty of financial & physical health can trigger symptoms of anxiety, depression, and emotional exhaustion. The mind can begin to associate health or recovery with fear, fear of bills, of losing stability, of never catching up. The emotional toll of financial stress is well-documented, where individuals managing significant debt are more likely to experience mental health challenges, including insomnia, irritability, and hopelessness.

It's crucial to recognize the role of mental health professionals in identifying financial stress and veterans' care. In helping military members process and recover from trauma, I find in my work that medical debt compounds the burden. Because medical debt doesn’t just sit on a credit report; it lingers in the mind and body, potentially exacerbating PTSD-related symptoms such as guilt, shame, or avoidance. Financial strain from combat-related or medical expenses erodes a person's sense of control, leading them to believe they are a burden to others, cannot meet specific financial milestones, or avoid acknowledging their financial future.

Financial instability and mental health challenges can also heighten the risk of suicidal thoughts, as feelings of failure are tied to economic hardship. For support providers, being prepared to recognize and respond to warning signs is essential. That is why I developed a Suicide Risk Assessment Cheat Sheet designed to quickly identify warning signs, assess risk levels, and document interventions confidently and ethically.

This resource helps identify risk and protective factors in real-time conversations & confidently assess risk without pathologizing normal distress. Using structured assessment resources ensures that professionals don’t miss critical cues and can intervene early, especially when stress around finances, loss, or guilt begins to intensify.

Addressing the link between financial strain and mental health requires compassion and systems-level awareness. For clinicians, social workers, and community providers, it’s essential to:

• Assess financial stress as part of the mental health picture. Asking about financial strain can open doors to deeper conversations about shame, fear, and self-worth.

  
  

• Normalize the emotional impact of debt. People often feel embarrassed to admit financial struggles; therefore, naming it as a legitimate stressor validates their experience.

  
  

• Provide resource referrals. Referrals to veteran resources, such as FinVet, can provide practical relief that complements therapy.

  
  

• Encourage self-compassion. Reminding the service member that healing from trauma or illness takes time, and financial setbacks are not a reflection of personal failure.

The price of recovery should never cost someone their peace of mind. Yet for many service members, the emotional burden of medical or combat-related expenses becomes a quiet struggle that mirrors the larger gaps in our healthcare and support systems. As mental health professionals, advocates, or loved ones, we can make a difference by recognizing that the path to healing is not only medical, it’s financial, emotional, and deeply human. By addressing these intersecting challenges with empathy and evidence-based tools, we allow fellow service members to rebuild not just stability, but hope.