More debt, more stress: Credit card stress hits highest level in three years
SOURCE Debt.com
FORT LAUDERDALE, Florida , May 29, 2024 /PRNewswire-HISPANIC PR WIRE/ — Over the past three years, a growing number of Americans are feeling stressed after using their credit cards, which is putting them further into debt and affecting their mental health.
To support Mental Health Awareness Month, Debt.com surveys Americans about mental health and money each May. The results show that where there is more debt, there is more stress.
“It’s the dictionary definition of a vicious cycle,” says Debt.com president and CPA Howard Dvorkin . “You get behind on your bills, so you distract yourself with dinner or some retail therapy. Of course, that adds to your debt, which adds to your stress, which depletes your mental health. And our research shows that it’s getting worse every year.”
In 2022, 1 in 5 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. Generation Z (47%) is most likely to feel stressed after using credit cards.
Nearly half (47%) say they take on more debt when they feel stressed. Debt.com research shows a breakdown of those who take on more debt when they feel stressed:
- 67% of Gen X take on more debt when stressed
- 40% of millennials take on more debt when they are stressed
- 37% of Gen Z take on more debt when stressed
More than half (51%) feel stressed when reviewing their credit card bills, while:
- 10% feel hopeless
- 8% feel sad
- 4% experience sleep loss
- 3% experience a loss of appetite
- 3% experience lower self-esteem
Research also shows that 26% say they argue with their partner about credit card spending:
- 45% are from Generation X
- 16% are millennials
- 16% are from Generation Z
- 7% are Baby Boomers
The convenience of credit cards can negatively impact mental health, according to 76% of respondents. More than 1 in 4 have racked up at least $10,000 in credit card debt because they were feeling depressed or stressed.
Additionally, research shows that the Mid-Atlantic region of the country is experiencing more stress (31%) and mental strain from credit card debt.
“The generational and regional data remind us of something important,” says Dvorkin. “Debt isn’t evenly distributed in this country, but 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 behind on his cards. “Those people may have nothing else in common except how bad they feel about their finances.”
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 verified and certified providers who provide the best advice and solutions for consumers “as life happens.”
