Financial Stress Statistics: What The Data Says About Money And Stress

According to the American Heart Association, 82% of adults state that they feel stressed about money. Financial stress can have a profound impact on a person’s mental and physical health, in addition to affecting their relationships. Below, we’ll look at financial stress statistics, common sources of financial stress, and strategies for reducing financial stress, including financial and mental health counseling. 

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Main financial stress statistics 

• Seventy-three percent (73%) of Americans report that personal finances are their main source of stress. Financial stress ranks higher than work, family, and political stress. 
• According to the Money and Mental Health Policy Institute, 18% (nearly one in five) of people with mental health challenges are in problem debt (a situation in which a person is unable to make their debt repayments). Also, individuals experiencing mental health challenges are approximately three and a half times more likely to have problem debt than people without mental health challenges. 
• Individuals experiencing depression and problem debt are generally 4.2 times more likely than people without financial challenges to still experience depression 18 months later. 
• In Motley Fool Money's 2024 Financial Stress, Anxiety, and Mental Health Survey, more than 50% of respondents reported feeling anxious or stressed about their finances at least three days a week. 

Sources of financial stress

Financial stress can come from numerous sources. Some people experience financial stress due to job loss. Even if unemployment benefits help with rent or mortgage payments, they may not be enough to cover food, utilities, phone bills, and other expenses. 

Another common source of stress is medical bills. Some people lack health insurance, which means that a single visit to the hospital can come with high medical expenses. Even people who have insurance tend to experience stress related to medical bills. Many people have to meet a high deductible before their insurance begins to cover medical expenses. Aside from insurance costs, people often have to pay for medication as well. All of these sources of stress can make it difficult to effectively heal from medical problems. 

Strategies to improve personal finance challenges

In some cases, individuals and families may be able to implement strategies to gradually improve their financial situations. These strategies may not solve all of their financial problems at once, but they may make a difference and lead to reduced stress. First, people facing financial challenges may benefit from using a budgeting app to track their spending. Some budgeting apps may allow users to link their bank account and credit cards so that they can automatically track spending. 

People experiencing financial stressors may also benefit from creating an emergency fund. Some financial experts may even recommend this before completing debt repayment.  An emergency fund can help with unexpected expenses, such as a car repair. 

To improve financial health, individuals may also benefit from writing down their financial goals. These don’t have to be lofty long-term goals but rather short-term goals that can build momentum. Research suggests that writing down personal goals can make it more likely that one achieves them. 

The impact of credit card debt and money stress on mental health

Credit card debt and other financial pressures can seriously affect a person’s mental health. For some people, the weight of debt can lead to a daily sense of overwhelm. In some cases, debt can lead to chronic stress, anxiety, and depression. Financial pressure can also affect a person’s relationships with their family and friends, which can impact their emotional well-being. Some people may isolate themselves when they experience debt or financial pressure, and research shows that isolation can significantly affect a person’s mental health. One study suggests that a lack of social connection can be as harmful as smoking 15 cigarettes per day.

Financial counseling to improve financial health 

Some people living with financial anxiety may benefit from speaking with a financial advisor. Financial counselors often have knowledge of various forms of financial support available to those who are experiencing hardship. Some financial counselors can help with debt management by advising that people prioritize paying off the debt with the highest interest rate. 

It may be important to note that some financial counselors may provide something called debt consolidation. They can sometimes negotiate with creditors to reduce debt owed. However, this often means canceling consolidated cards and not being able to open any new credit cards until the debt is paid off. This service can also affect a person’s credit report, so it may be wise to ask exactly what type of financial counseling an organization provides. 

Talking to a therapist about financial stress

While a financial counselor might have valuable advice for managing debt, it may help to speak with a mental health professional to learn to manage stress in the meantime. A licensed therapist can recommend personalized stress management techniques, which may help you maintain good mental health while working toward more financial stability. 

Are you experiencing financial stress?

Talk to a counselor online

Online therapy for financial stress

While many people enjoy attending therapy in person, online therapy is another option that can be more accessible. With an online therapy platform like BetterHelp, individuals facing financial stress can speak with a therapist from home via phone, video, or live chat at a time that works for their schedule. This may be especially helpful for those who are working overtime to improve their financial situation. 

Online therapy can effectively treat numerous mental health challenges. Studies have demonstrated the effectiveness of online therapy for anxiety, depression, and substance use disorder—all of which can be common in people experiencing financial stress.

Takeaway 

Statistics show that financial stress tends to be highly prevalent across the country. Millions of people experience the physical and mental effects of  financial stress. However, there is help available through therapy—both in person and online. Seeking advice from a financial counselor can also be beneficial.