The Struggling Connection Between Mental Health and Credit Card Debt: Insights from Debt.com

The Impact of Credit Card Debt on Mental Health

A recent survey conducted by Debt.com sheds light on the troubling relationship between credit card debt and mental health among Americans. With rising balances and high-interest rates, many individuals are facing unprecedented emotional distress due to their financial situations.

The Survey Findings

According to the annual Mental Health and Money Survey from Debt.com, there has been a dramatic increase in negative feelings associated with financial struggles between 2022 and 2025. The findings indicate that despite a decrease in inflation rates—from 6.5% three years ago to 2.3% this year—the emotional toll inflicted by financial concerns remains substantial.

In total, 1,000 individuals were surveyed, revealing that debt-related anxiety significantly impacts various aspects of their lives, from social engagements to performance at work. Interestingly, 10% of respondents in 2020 stated that they avoided social outings due to their credit card debt; this figure has since more than doubled to over 23% today.

The Broader Impact

The ramifications extend well beyond social life. Previously, only 5% of participants indicated they shied away from dating as a result of their credit card debt, but now that number has ascended to over 13%. Howard Dvorkin, a certified public accountant and president of Debt.com, remarks, "Inflation may have decreased, but the damage already inflicted is profound. Credit cards are the most common source of debt, leaving deep, often invisible scars that can endure for years."

Emotional Distress on the Rise

The survey highlights an alarming trend regarding emotional distress linked to credit card usage. Since 2022, feelings of hopelessness have surged, from 6% to nearly 22%, while reports of sadness shot up from nearly 7% to 22% in the same timeframe. Significant increases were also recorded in sleep disturbances attributed to debt worries—rising from just above 2.5% to 13%.

A startling 71% of respondents acknowledged that the convenience of credit cards adversely affects their mental health. Following a credit card purchase, 43% reported feeling stressed, while nearly 40% admitted to avoiding checking their monthly statements due to anxiety. Furthermore, 25% confessed to applying for new credit cards while already feeling sad or stressed.

Other Financial Struggles

Credit card debt isn't the only mental health challenge stemming from financial issues. The survey also explored the pressures of enduring inflation and student loan debt.

A vast majority, 74%, expressed feelings of anxiety relating to financial struggle, with 23% indicating it affected their work concentration and 7% stating they lost their appetite. In addition, concerning data emerged regarding student debt, where 88% of borrowers in default worry about wage garnishments or losing their tax refunds, and 68% have taken proactive steps such as enrolling in payment programs or setting aside funds each month.

Conclusion

As we contend with these financial realities, Howard Dvorkin emphasizes the critical link between mental health and financial wellness. "The more we discuss these matters and offer resources for individuals managing their debt, the lighter the emotional strain of financial stress will become." The need for open conversations about financial health is more pressing than ever, as millions wrestle with the intertwined struggles of credit card debt and mental well-being.

Debt.com Survey