Rising Credit Card Debt and Financial Stress Take a Heavy Toll on Mental Health

The emotional and psychological impact of financial stress, particularly from credit card debt, has seen a dramatic rise among Americans, according to a recent survey by Debt.com. Despite a decrease in inflation rates from 6.5% in 2022 to 2.3% in 2025, the mental toll of debt has not subsided, with more individuals reporting feelings of hopelessness, sadness, and sleep loss due to their financial situations.

Credit card debt emerges as a primary concern, with 23% of respondents now avoiding social outings because of their debt, up from just over 10% in 2020. Similarly, the percentage of individuals avoiding dating due to credit card debt has more than doubled from 5% in 2022 to over 13% in 2025. These figures underscore the pervasive effect of financial burdens on personal and emotional well-being.

Howard Dvorkin, CPA and chairman of Debt.com, notes, "Inflation might have dropped, but the damage is done. Credit cards are the most widespread form of debt, which means they leave the deepest scars." The survey, which polled 1,000 U.S. adults, reveals that 71% of respondents believe the convenience of credit cards negatively impacts their mental health, with nearly 40% avoiding their monthly statements due to anxiety.

Beyond credit card debt, the survey also sheds light on the ongoing stress caused by inflation and student loan debt. Seventy-four percent of respondents report feeling anxious about rising prices, with 23% stating it affects their focus at work. Student loan debt continues to be a significant source of stress, with 88% of those in default worrying about wage garnishment or loss of tax refunds.

The findings highlight the intricate link between financial health and mental well-being. "Our mental health is deeply connected to our financial health," Dvorkin added. "The more we talk about this and give people resources to manage their debt, the more we reduce the emotional burden of money stress." This survey serves as a crucial reminder of the need for comprehensive strategies to address the mental health implications of financial stress.