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Yahoo
29-05-2025
- Business
- Yahoo
Mental Health and Your Credit Cards: A "Sad" and "Hopeless" Situation
A survey finds that big balances and steep interest rates are costing Americans much more than money. FORT LAUDERDALE, Fla., May 29, 2025 /PRNewswire/ -- annual Mental Health & Money Survey reveals dramatic increases in negative emotions and behaviors from 2022 to 2025, despite inflation being significantly lower today (2.3%) compared to three years ago (6.5%). The primary culprit appears to be credit card debt. When asked how credit card debt affects their social life, just over 10% of respondents in 2020 said, "I avoid going out with friends or family." This year, that number more than doubled to over 23%. The impact extends to dating as well. In 2022, only 5% reported avoiding dating due to credit card debt. Today, that figure has climbed to over 13%. "Inflation might have dropped, but the damage is done," said Howard Dvorkin, CPA, chairman of "Credit cards are the most widespread form of debt, which means they leave the deepest scars. You can't always see them, but they can linger for years and affect millions of Americans." Survey results from 1,000 Americans further support Dvorkin's concerns, revealing troubling trends in emotional well-being tied to financial stress. When asked how they feel while reviewing their credit card bills and what emotional triggers prompt them to spend, the responses revealed concerning trends. Emotional Distress Linked to Debt Has Surged Since 2022 In 2022, only 6% reported feeling hopeless — by 2025, that number jumped to nearly 22% Feelings of sadness rose from almost 7% in 2022 to 22% in 2025 Reports of losing sleep over debt more than quadrupled, from just over 2.5% to 13% Majority Link Credit Card Use to Emotional Stress and Anxiety 71% of respondents say the convenience of credit cards negatively impacts their mental health 43% feel stressed after using their cards Nearly 40% avoid reviewing their monthly statements due to anxiety 25% admitted to applying for a credit card while already feeling sad or stressed Credit card debt isn't the only financially motivated mental health issue. This year's survey also asked about lingering inflation and student loan debt. Inflation Stress Spills into the Workplace and Daily Life 74% report feeling anxious 23% say it affects their focus at work 7% report being unable to eat The Weight of Student Loan Default: Fear, Action, and High Balances 88% of borrowers with defaulted student loans worry about wage garnishment or loss of tax refunds 68% have taken proactive steps like enrolling in repayment programs or setting aside money monthly Nearly 1 in 4 borrowers owe more than $50,000 "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." View original content to download multimedia: SOURCE Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-04-2025
- Business
- Yahoo
Federal Reserve says consumer distress is at a 12-year high and credit cards are the canary in the coal mine
While investors worry about the markets, the Federal Reserve Bank of Philadelphia is raising the alarm about another economic indicator: credit-card payments. According to the central bank, more than one in 10 Americans (11.1%) paid the bare minimum monthly on their credit-card debt in the fourth quarter of 2024. That's a sign of consumer distress, and it's at a 12-year high. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Another distress signal? Credit-card accounts that are three months or more past due, which also hit a record high in the fourth quarter of 2024. Read on to learn why so many Americans owe so much, what to do if you're one of them and how to get out and stay out of debt. It's no surprise Americans are struggling with debt, given pandemic and post-pandemic inflation. The Federal Reserve aims to hold inflation at around 2% annually, but it hit 4.7% in 2021, soared to 8% in 2022; then dipped down to 4.1% in 2023, still double the target. Last year, it settled at 2.9% and in March 2025 it fell to 2.4%. Unfortunately, Americans' wallets have not caught up. They've been using their credit cards to get by throughout this inflationary era. In fact, 2025 credit card survey reveals that one in three Americans relies on credit cards to make ends meet. Nearly the same number have maxed out their cards in light of rising costs. President Trump's tariffs will likely drive prices up further, which could exacerbate this troubling trend of people turning to cards to cover the basics. If you have consumer debt, don't skip payments on any of your credit-card balances. That could damage your credit score. Mark payment due dates on your calendar and set up reminders to double- or triple-check that the payments go through. With the average credit card interest rate coming in at 21.37% as of February 2025, credit card debt is really expensive. Minimum payments barely cover the interest. That's why paying off your credit card balance every month is best, but if you can't afford that, try to pay more than the minimum. To make headway on your debt: Monitor your spending and create a detailed budget that prioritizes paying off debt. Stop charging anything on your credit cards that you can't pay off immediately. Automate credit-card payments on payday so money goes directly to your creditors. Each month, choose a creditor you want to send additional payments to based on how much you can afford. Once you pay off that creditor's debt, start sending additional payments to the next debt you want to pay off. Keep going until you are completely debt-free. One option — the Snowball Method – is to focus on the debt with the lowest balance first. Finance expert Dave Ramsey recommends this approach. The idea is that you'll stay more motivated if you score quick wins. You could also use the Debt Avalanche system, making additional payments on debt with the highest interest rates first. That means you'd prioritize credit cards over a line of credit, for example. The Debt Avalanche system ensures you'll stop paying excessive interest sooner. You might also consider a debt consolidation loan to pay off your credit-card debt and then pay off the loan (at a lower interest rate) monthly. Once you're debt-free, stay that way by applying the techniques you learned to pay down debt in a new way — building your financial security. Keep living on the careful budget you created when you were working on debt payoff — but channel the money you used to pay down debt monthly to build up an emergency fund instead. The fund should cover up to six months of living expenses. That will ensure you avoid using credit cards in the event of a layoff or other crisis. If you already have an emergency fund, direct the money toward investing. By budgeting, avoiding excessive use of credit cards and being careful about what you spend, you can invest in your future, not your creditors. Read more: This hedge fund legend warns US stock market will crash a stunning 80% — claims 'Armageddon' is coming. Don't believe him? He earned 4,144% during COVID. Here's 3 ways to protect yourself This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
Debt.com's 2025 Survey Exposes Disturbing Trends in Credit Card Debt as Inflation Continues to Pressure Americans' Finances
With one-third of respondents relying on credit cards to cover basic expenses - many having maxed out their limits FORT LAUDERDALE, FL / / March 31, 2025 / As policymakers push forward with efforts to cap steep credit card interest rates, the latest Credit Card Survey from sheds light on how inflation has significantly impacted the financial stability of Americans - and how many are still struggling to dig their way out of debt. For the second year in a row, one in three Americans say they rely on credit cards to make ends meet, with a growing number already maxed out. The national poll of 1,000 adults illustrates how rising costs have shifted credit cards from being a tool of convenience to a lifeline for survival. "Even if headlines suggest inflation is cooling, everyday Americans are still feeling its full weight at home," says Howard Dvorkin, CPA and Chairman of "Our findings show that many are forced to lean on high-interest credit cards just to get by - yet most haven't taken steps to explore solutions that could help them regain control." Key Findings from 2025 Credit Card Survey 32% of Americans have maxed out their credit cards 37% use credit cards regularly just to make ends meet 44% say inflation has caused them to carry a larger monthly balance Of those maxed out, 80% would rely on credit cards during a financial emergency, and 23% owe more than $20,000 in credit card debt This financial strain is reflected across generations, with Millennials (42%) and Gen Xers (39%) maxing out their cards at higher rates than Gen Z (32%) or Baby Boomers (14%). Notably, over 63% of all respondents carry a credit card balance, and more than 1 in 5 owe over $10,000-a stark indicator of the mounting debt crisis. Credit Card Interest Rates Under Fire findings emerge as Senators Alexandria Ocasio-Cortez (D-NY) and Anna Paulina Luna (R-FL) introduce a bipartisan bill to cap credit card interest rates at 10%, a move aimed at helping working people in endless cycles of debt. "We are seeing interest rates above 24%, and 27% of survey respondents don't even know their APR," says Dvorkin. "This lack of awareness paired with record-high balances is financially dangerous. The proposed cap could offer real relief to millions, but education and action are key." Economic Backdrop: Consumer Sentiment Slips This news comes amid fresh data from the University of Michigan's Consumer Sentiment Index, showing a dip in consumer confidence. Economic uncertainty, persistent inflation, and high borrowing costs have left many Americans cautious about spending - and anxious about their financial futures. Awareness of Debt Solutions Remains Low Despite the growing burden, 57% of respondents have never considered professional or DIY debt relief options, such as credit counseling, balance transfers, or debt consolidation. This highlights a critical gap in financial education and underscores the importance of proactive outreach. Full Survey Data Available Upon Request comprehensive report includes generational breakdowns, insights into how Americans are introduced to credit, and how financial emergencies drive credit card reliance. Contact Details RandolphJRandolph@ Company Website SOURCE: View the original press release on ACCESS Newswire
Yahoo
25-03-2025
- Business
- Yahoo
Debt.com's 2025 Credit Card Survey Reveals Alarming Credit Card Debt Trends as Inflation Continues to Strain American Wallets
FT. LAUDERDALE, Fla., March 25, 2025 /PRNewswire/ -- As lawmakers propose new legislation to cap sky-high credit card interest rates, latest Credit Card Survey reveals just how deeply inflation has driven Americans into debt—and how many are struggling to escape it. For the second year in a row, 1 in 3 Americans say they rely on credit cards to make ends meet, with many already maxed out. The nationwide survey of 1,000 U.S. adults underscores how inflation and rising costs have turned credit cards from convenience tools into financial lifelines. "Inflation may be easing in headlines, but in households, the impact remains severe," says Howard Dvorkin, CPA and Chairman of "Our survey shows people are still forced to lean on high-interest credit cards for daily survival—and most haven't explored solutions to get out." Key Findings from 2025 Credit Card Survey 32% of Americans have maxed out their credit cards 37% use credit cards regularly just to make ends meet 44% say inflation has caused them to carry a larger monthly balance Of those maxed out, 80% would rely on credit cards during a financial emergency, and 23% owe more than $20,000 in credit card debt This financial strain is reflected across generations, with Millennials (42%) and Gen Xers (39%) maxing out their cards at higher rates than Gen Z (32%) or Baby Boomers (14%). Notably, over 63% of all respondents carry a credit card balance, and more than 1 in 5 owe over $10,000—a stark indicator of the mounting debt crisis. Credit Card Interest Rates Under Fire findings emerge as Senators Alexandria Ocasio-Cortez (D-NY) and Anna Paulina Luna (R-FL) introduce a bipartisan bill to cap credit card interest rates at 10%, a move aimed at helping working people in endless cycles of debt. "We are seeing interest rates above 24%, and 27% of survey respondents don't even know their APR," says Dvorkin. "This lack of awareness paired with record-high balances is financially dangerous. The proposed cap could offer real relief to millions, but education and action are key." Economic Backdrop: Consumer Sentiment Slips This news comes amid fresh data from the University of Michigan's Consumer Sentiment Index, showing a dip in consumer confidence. Economic uncertainty, persistent inflation, and high borrowing costs have left many Americans cautious about spending—and anxious about their financial futures. Awareness of Debt Solutions Remains Low Despite the growing burden, 57% of respondents have never considered professional or DIY debt relief options, such as credit counseling, balance transfers, or debt consolidation. This highlights a critical gap in financial education and underscores the importance of proactive outreach. Full Survey Data Available Upon Request comprehensive report includes generational breakdowns, insights into how Americans are introduced to credit, and how financial emergencies drive credit card reliance. About is a leading provider of financial education and solutions, connecting consumers with expert resources for credit counseling, debt relief, and personal finance management. The company offers tools, guides, and referrals to help people overcome debt and achieve lasting financial stability. View original content to download multimedia: SOURCE Sign in to access your portfolio
Associated Press
27-01-2025
- Business
- Associated Press
Debt Settlement Gains Awareness and Approval
research shows debt settlement is becoming a popular solution in today's economy. FORT LAUDERDALE, Fla., Jan. 27, 2025 /PRNewswire/ -- Debt settlement is now gaining traction as a favored option for debt relief, according to a survey. The survey of 1,144 Americans found that 89% of respondents are aware of debt settlement, with 58% considering it an effective solution—outpacing the 49% who believe bankruptcy is helpful. 'Thanks to new regulations and industry standards, reputable companies have transformed debt settlement into a sought-after solution,' says Howard Dvorkin, CPA and Chairman of 'It's now both powerful and reputable.' The survey findings reveal a shift in attitudes toward debt settlement. Thirty percent of respondents used debt settlement to resolve debts, compared to 44% who filed bankruptcy leaving 20% who opted for a debt management program. This research highlights that many consumers prefer debt settlement because it allows them to negotiate with creditors to pay back a portion of what they owe, often without an attorney or legal filing. 'These critical findings emphasize that debt resolution is becoming a go-to option for consumers overwhelmed by debt,' says Denise Dunckel Morse, CEO of the American Association for Debt Resolution. 'As many continue to struggle under the weight of inflation and other pervasive economic factors, our industry has continued to prioritize their well-being, with strong, transparent standards for providers.' Key findings: 49% of all respondents know debt settlement can cut their debt by 30-50% including 52% of Millennials and 50% of Gen Z 79% think Bankruptcy will do more damage to their credit than debt settlement 44% know credit scores don't impact the ability to pursue debt settlement 'Consumers are looking for relief that doesn't involve the complexity and long-term impact of bankruptcy,' said Don Silvestri, President of 'In regions like the Mid-Atlantic, where high home prices stretch budgets, debt settlement is becoming a go-to option.' Silvestri noted that the Mid-Atlantic states, which have some of the highest living costs in the nation, account for the majority of debt settlement inquiries. 'When expenses are high, more people turn to options like debt settlement to keep their financial situation manageable,' he said. Silvestri added that has seen a surge in consumer interest in debt settlement over the past decade. 'When we started 11 years ago, we had to explain what debt settlement was and why it might be a good fit,' he said. 'Now, people are coming to us already informed and asking for help.' Morse of the American Association for Debt Resolution says, 'Consumers nationwide should have access to the tools that are right for their unique financial position which are proven to be effective solutions.' The expectation is that the popularity of debt settlement will keep growing as more Americans look for alternatives to handle rising personal debt. Debt Settlement White Paper, released this month, further explores the trends and evolving attitudes toward debt settlement as a practical solution in the current economic environment. is a leading provider of financial education and debt relief solutions, helping Americans find the path to financial stability. Through expert guidance, educational resources, and personalized counseling, empowers people to tackle debt challenges and build a brighter future.
