Credit card debt is taking an increasingly heavy toll on Americans' mental health, according to a new survey conducted by Debt.com. The study, released in observance of Mental Health Awareness Month, shows a 17% increase over the past three years in the number of people feeling stressed after using their credit cards, with 4 in 10 respondents now reporting such stress.
The survey's findings paint a concerning picture of the relationship between financial stress and mental health. Nearly half of the respondents (47%) reported taking on more debt when feeling stressed, creating a vicious cycle of financial and emotional distress. This trend is particularly pronounced among Gen X, with 67% reporting increased debt accumulation during stressful periods.
Howard Dvorkin, CPA and chairman of Debt.com, describes this phenomenon as "the dictionary definition of a vicious cycle," noting that financial stress can lead to behaviors that further exacerbate debt, perpetuating a downward spiral of financial and mental well-being.
The impact of credit card debt on mental health is widespread, with 51% of respondents feeling stressed when reviewing their credit card bills. Moreover, 26% report arguing with their significant other over credit card spending, highlighting the strain that financial stress can place on relationships.
Generational differences are evident in the survey results, with Gen Z being the most likely (47%) to feel stressed after using credit cards. The Middle Atlantic region of the country appears to be experiencing the highest levels of stress and mental strain from credit card debt, at 31%.
The convenience of credit cards may be a double-edged sword, as 76% of survey respondents believe 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.
These findings underscore the critical need for financial education and support systems to help individuals manage their debt and reduce financial stress. As the link between financial health and mental well-being becomes increasingly clear, addressing credit card debt may prove to be an important factor in improving overall public health.
