A new survey conducted by Debt.com has uncovered a troubling correlation between rising credit card debt and deteriorating mental health among Americans. The findings, released in observance of Mental Health Awareness Month, highlight a significant increase in stress levels associated with credit card usage over the past three years.
According to the survey, the number of respondents feeling stressed after using their credit cards has risen by 17% since 2022, with 4 in 10 Americans now reporting such stress. This trend is particularly pronounced among Gen Z, with 47% experiencing stress related to credit card use.
The research also reveals a cyclical pattern of debt and stress, with nearly half (47%) of respondents admitting to taking on more debt when feeling stressed. This behavior varies across generations, with Gen X being the most likely (67%) to accumulate debt during stressful periods, followed by Millennials (40%) and Gen Z (37%).
The impact of credit card debt on mental health is multifaceted. Over half (51%) of respondents report feeling stressed when reviewing their credit card bills, while others experience feelings of hopelessness (10%), sadness (8%), loss of sleep (4%), loss of appetite (3%), and lower self-esteem (3%). Furthermore, 26% of respondents indicate that credit card spending is a source of conflict in their relationships, with Gen X couples being the most likely to argue over this issue.
The convenience of credit cards appears to be a double-edged sword, with 76% of survey participants believing it can negatively impact mental health. Alarmingly, more than one in four respondents have accrued at least $10,000 in credit card debt due to feeling down or stressed out.
Regional disparities in financial stress are also evident, with the Middle Atlantic region experiencing the highest levels (31%) of stress and mental strain from credit card debt.
Howard Dvorkin, CPA and chairman of Debt.com, emphasizes the universal nature of financial stress, stating, "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."
This research underscores the urgent need for increased awareness and support for those struggling with the mental health implications of financial stress. It also highlights the importance of financial education and debt management resources to help break the cycle of debt and stress that many Americans are experiencing.
As credit card debt continues to rise and its impact on mental health becomes more apparent, it is crucial for individuals, financial institutions, and policymakers to address this growing crisis. Implementing strategies to promote financial wellness and providing accessible mental health support could be key steps in mitigating the negative effects of credit card debt on the nation's mental health.
