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About 55% of Americans feel embarrassed about their financial situation, while nearly half worry about debt every day.
In A Nutshell
Debt stress peaks at $75K–$99K, then declines for larger balances.
People with $500K+ in debt reported lower stress than those with $3K–$5K.
Credit cards created the most anxiety; auto loans showed no relief at higher levels.
Younger adults felt the least stressed, while older adults reported the highest levels.
CHESTERBROOK, Pa. — Most people assume that owing more money means more stress. But a new survey of 1,186 Americans suggests the opposite may be true once debt climbs high enough. Stress appears to peak at mid-range levels and then decline—a psychological effect sometimes described as “debt numbness.”
When Stress Peaks, Then Declines
The survey, conducted for JG Wentworth, found that respondents with small debts under $500 reported the lowest stress, averaging 1.5 out of 5. Stress increased with larger balances, reaching its highest point of 4.2 when total debt fell between $75,000 and $99,999. Surprisingly, those with more than $500,000 in debt reported stress levels of 2.5, lower than the 3.3 average for people owing just $2,500 to $4,999.
This finding suggests that when amounts become overwhelming, people may emotionally disengage. The survey did not measure brain activity, so “why” remains uncertain. But one interpretation is that very large numbers lose their emotional impact and no longer feel solvable in the same way as smaller debts.
Nearly Half of Americans Worry About Debt Daily
Debt weighed heavily on daily life for many participants. Just under half (46.5%) said they worry about debt every day. Half admitted to avoiding their bank statements, a behavior that could worsen financial problems by delaying action.
Shame was another theme. More than half of respondents (54.6%) said they felt embarrassed about their debt, even though nearly everyone surveyed (98%) reported owing money.
When asked about specific concerns, the most common answers included falling behind on payments (53.7%), not having enough for retirement (53.7%), discovering higher balances than expected (53.5%), losing homes or belongings (53.3%), and leaving little to children (51.8%).
Financial stress can hit peak levels when we discovers higher balances than we thought we had. (Photo by Nebojsa Tatomirov on Shutterstock)
Younger Adults Report Less Stress
Stress levels varied sharply by age. Among 18–26-year-olds, 47.9% rated their debt stress at 1, and 48.1% rated it at 2. Adults aged 27–42 showed a similar pattern, with 84.1% falling in the 1–2 range.
The picture shifted for older respondents. Adults 43 and older were most likely to select a mid-level stress score of 3 (32.5%). Among those aged 43–59, 23.2% reported the highest rating of 5, compared to just 1.2% of young adults.
The survey did not ask why these age gaps exist. But it is possible younger adults feel they have more time to recover financially, while older adults may feel closer to retirement with fewer earning years ahead.
Despite daily worry, optimism persisted. Over half (53.4%) said they felt reassured knowing debt is common in society. Half (50.5%) considered their debt small enough not to be overwhelming, and 50.2% believed they would earn enough in the future to pay it off.
Which Debts Create the Most Stress?
Not all debt is perceived the same way.
Credit cards produced the highest stress levels, peaking at 4 out of 5 when balances grew by an additional $30,000, then declining.
Student loans rose steadily, starting at 2.4 for a $500 increase and reaching about 3.5 at an additional $40,000.
Medical debt showed no clear pattern, peaking at 3.3 with an additional $25,000 before declining.
Auto loans stood out. Stress climbed consistently, from 2.3 with an additional $500 to 4.0 with an additional $40,000. Unlike other categories, stress did not decline. This may be because cars lose value even as payments continue.
Mortgages generated controlled responses, possibly because homes often appreciate. Even large amounts did not trigger the same anxiety spikes seen in unsecured loans.
Personal loans climbed steadily to 4.0 when an additional $75,000 was added, then eased slightly to 3.9 at the $100,000 mark.
Buy Now, Pay Later (BNPL) plans rose to 3.8 with an additional $10,000 in debt.
The differences suggest that how people perceive debt matters as much as the balance itself. Debts tied to appreciating assets, like homes, may feel more manageable than unsecured debt that grows with interest.
The Meaning of “Debt Numbness”
The survey highlights a paradox. People with overwhelming balances may report lower stress than those with more manageable amounts. In the short term, this emotional disengagement might feel like relief. But it could also delay important action, since avoidance was common.
Counselors and advisors may need to recognize when someone has reached this “numb” state. Traditional stress-reduction techniques may not apply if the real issue is that numbers have lost meaning. Strategies that make large debts feel concrete again, such as breaking them into smaller steps, could help.
Age differences may also influence how debt numbness develops. Younger Americans may be less stressed because they expect future earnings to resolve the problem. Older adults, facing retirement deadlines, may feel the opposite.
Survey Methodology
The survey was conducted in July 2025 on behalf of JG Wentworth. A total of 1,186 U.S. adults were asked about their current debt and how it affects their stress. Participants rated stress on a five-point scale across seven categories: credit card, student loan, medical, auto, mortgage, personal, and Buy Now, Pay Later.
Demographics:
Gender: 52.8% female, 45.8% male, 1.2% non-binary, 0.2% preferred not to say.
Age: 42.6% aged 18–26, 50.9% aged 27–42, 5.8% aged 43–58, 0.6% aged 59–68, 0.1% over 69.
Income: 45.6% earned less than $25,000, 44.9% earned $25,000–$49,999, 5.4% earned $50,000–$74,999, 2.2% earned $75,000–$99,999, and 1.9% earned $100,000 or more.
This distribution shows that the vast majority of respondents (over 93%) were under 43, and nearly all earned under $50,000 annually.
Disclaimer: This article is for general information only and not financial advice. For personal guidance, consult a qualified financial professional.