Survey Shows Key Insights Into How Debt Impacts Our Mental Health
Americans collectively owe $16,960,000,000,000 in debt. That’s $16.9 trillion, if all those zeros are making your head spin.
It’s no secret that debt affects the mental health of many Americans. But not all of it affects us the same, according to an Innerbody survey.
Mental Health’s Role
Innerbody.com conducted a survey to assess how different types of debt affect Americans’ mental health. Over 1,060 people participated, shedding light on their mental well-being around debt, lifestyle, spending, and saving habits.
Debt and Stress
More than 60% of survey respondents stated that debt gives them stress. Furthermore, 48.7% indicated that debt gives them anxiety “always” or “often.”
Fast-Track to Depression
Holding debt may increase the risk of depression, according to Innerbody’s results. A massive 44.4% of participants responded that they’ve felt stressed over debt.
Most Common Debts
Home loans were the most common type of debt survey respondents reported, with 63.1% having them. Credit card debt was a close second (60.1%), followed by student loans (42.3%) and auto loans (39.1%).
Top Troubling Debt
Of all the debt types, Americans appear most troubled by their mortgage debt. Over 35% of respondents said that their worries over debt are due to home loans. Credit cards were the second-most negative debt for mental health, causing 28.9% of respondents’ worries.
Worry Says Who?
Sixteen percent of respondents bucked the trend, stating that they’ve never experienced mental health issues due to their debt.
Debt in Perspective
Debt is continuing to pile up for millions of Americans. Between 2019 and the end of 2022, Americans accumulated an additional $2.75 trillion in debt. Delinquency on debt (missed payments of 30+ days) increased for almost every debt category.
Light Pockets
Americans owe a staggering amount of debt to lenders. The breakdown of household debt nationwide is as follows:
- Mortgages: $11.92 trillion
- Vehicle loans: $1.55 trillion
- Student loans: $1.60 trillion
- Credit cards: $986 billion
Interest Busters
Even though Americans owe relatively little on their credit cards, swiping plastic often comes at a higher cost in the long run than loans like mortgages. Credit cards, private student loans, and personal loans have notoriously high interest rates.
Average Interest Rates
Based on Innerbody’s study, the average credit card interest rate is 6.95%. Auto loans came in next at 4.33%, followed by student loans (4.13%) and home loans (4.03%).
Cringe-Worthy Outstanding Balances
Perhaps unsurprisingly, home mortgages had the highest average outstanding balance in Innerbody’s survey, at $77,270. Average student loan debt was significantly lower at $11,640, as were auto loans ($9,100) and credit cards ($7,660).
Breaking Free of Debt (or Not)
Over 45% of respondents pay between $400 and $1,000 monthly towards their debt, while 7.4% pay less than $100. But those numbers don’t paint the full picture, given that minimal monthly payments vary depending on how much debt one has. So, Americans might not be paying down their debt as aggressively as it might seem.
Mom, Look at Me
Of all the generations analyzed, Gen X had the greatest number of participants with no outstanding debt. However, they lagged slightly behind Gen Z and millennials on the credit card debt front.
Settling Down Young
Gen Z has the most mortgage debt, according to Innerbody’s findings. Whereas 15.5% reported having no mortgage, 37.8% of millennials and 39.6% of Gen X respondents said the same.
Shifting Tides
Homeownership doesn’t have to be as traditional as in the past. Gen Z’s tech-savvy ways give them easier access to opportunities like crowdfunding, allowing multiple stakeholders to invest in one property.
Mental Health and Generations
Gen Z appears to have the most mental health struggles as a result of debt, according to Innerbody’s findings. Over 54% of Gen Z reported suffering from debt-related mental health issues.
Personal Care Out the Window
Sixty-five percent of survey participants said they had postponed a vacation because of their debt. Nearly 60% say they’ve skipped a self-care routine, while 37.9% have put off starting a family, and 31% have chosen not to go to a doctor because of their debt. All of these choices can contribute to deteriorating mental health.
Low Financial Literacy
Americans lack financial literacy, according to Innerbody’s survey. Of the different generations polled, Gen Z is more concerned about their future financial security than any other generation.
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