A new survey by Debt.com has brought to light the escalating mental health crisis associated with rising credit card debt among Americans. The study, aligning with Mental Health Awareness Month, shows a 17% increase in stress levels related to credit card use since 2022, affecting 4 in 10 Americans, with Gen Z experiencing the highest stress at 47%.
The survey uncovers a vicious cycle where stress leads to increased debt, which in turn exacerbates stress. This pattern is most prevalent among Gen X (67%), followed by Millennials (40%) and Gen Z (37%). The mental health repercussions are diverse, ranging from stress when reviewing bills (51%) to feelings of hopelessness (10%), sadness (8%), and even physical symptoms like loss of sleep (4%) and appetite (3%). Additionally, 26% of respondents report credit card spending as a source of relationship conflict, particularly among Gen X couples.
Despite their convenience, 76% of participants believe credit cards can adversely affect mental health, with over a quarter accumulating at least $10,000 in debt due to stress or depression. The Middle Atlantic region reports the highest stress levels (31%) from credit card debt.
Howard Dvorkin, CPA and chairman of Debt.com, remarks on the widespread nature of financial stress, emphasizing that while debt distribution varies, the accompanying stress is a universal experience. This study calls for heightened awareness and support for those grappling with the mental health impacts of financial stress, alongside the need for financial education and debt management resources to disrupt the debt-stress cycle.
As credit card debt's toll on mental health becomes increasingly evident, the findings stress the importance of collective action from individuals, financial institutions, and policymakers. Advocating for financial wellness initiatives and accessible mental health services could play a pivotal role in alleviating the adverse effects of credit card debt on mental health across the nation.
