More Debt, More Stress: Credit Card Stress Hits Highest Level in Three Years Adding to Mental Health Challenges

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May 29, 2024, 11:16 ET

Debt.com's third annual mental health and money survey shows Americans are more stressed than ever.

FORT LAUDERDALE, Fla., May 29, 2024 /PRNewswire/ -- Over the past three years, a growing number of Americans are feeling stress after using their credit cards – it's driving them deeper into debt and affecting their mental health.

To support Mental Health Awareness Month, Debt.com surveys Americans on mental health and money each May. The results show where there's more debt, there's more stress.

Debt.com surveyed more than 1,000 Americans and asked 10 questions about their credit card spending affects their mental health. People responded from all 50 states and Washington, DC and were aged 18 and above.

"It's the dictionary definition of a vicious cycle," says Debt.com chairman and CPA Howard Dvorkin. "You fall behind on your bills, so you distract yourself with dinner out or some shopping therapy. Of course, that adds to your debt, which adds to your stress, which depletes your mental health. And our research shows it's getting worse every year."

In 2022, 1 in 5 survey respondents reported feeling stressed after using their credit cards. The 2024 survey reveals there has been a 17% increase over the past three years, raising that number to 4 in 10. Gen Z is most likely (47%) to feel stressed after using credit cards.

Nearly half (47%) say they take on more debt when they are feeling stressed. Debt.com's research shows a breakdown of those taking on more debt when they are feeling stressed:

67% of Gen X take on more debt when stressed
40% of Millennials take on more debt when stressed
37% of Gen Z take on more debt when stressed

Over half (51%) feel stressed when reviewing their credit card bills, while:

10% feel hopeless
8% feel sad
4% experience a loss of sleep
3% experience a loss of appetite
3% experience lower self-esteem

The research also shows that 26% say they argue with their significant other over credit card spending:

45% are Gen X
16% are Millennials
16% are Gen Z
7% are Baby Boomers

The convenience of credit cards can negatively impact mental health, according to 76% of survey respondents. More than 1 in 4 have accrued at least $10,000 in credit card debt because they were feeling down or stressed out.

Further, the research shows that the Middle Atlantic region of the country is feeling the most (31%) stress and mental strain from credit card debt.

"The generational and regional data remind us of something important," Dvorkin says. "Debt isn't equally distributed in this country – but the stress is. So, it doesn't matter if you're a 25-year-old struggling with student loans or a 50-year-old who's fallen behind on their credit cards. Those individuals might have nothing else in common – except for how terrible they're feeling about their finances."

Debt.com

About Debt.com: Debt.com is a consumer website where people can find help with credit card debt, student loan debt, tax debt, credit repair, bankruptcy, and more. Debt.com works with vetted and certified providers that give the best advice and solutions for consumers "when life happens."

SOURCE Debt.com