Let’s talk about debt (we know, we know…but you’ll want to hear this).
The first step to dealing with a problem is to admit there is one—and debt is a rampant problem for Americans.
It’s not just about money owed. It’s about the feelings that come up when you look at those numbers on your screen or a piece of mail (or even just think about them).
What do you experience when that happens?
Whatever your answer is, know this: debt stress is real, valid, and more common than most people think. If you can relate to any of this, you’re in the right place.
We’ll start by talking about the state of debt in America and how people are feeling about it. Then we’ll get into the emotional and physical effects of debt—and even give it a name.
But we won’t just leave it at that. We’ll provide some actions you can take now to start lowering your stress and reclaiming some peace.
And before we continue, just a reminder: you’re not alone. And there’s hope.
Spoiler alert: it’s bleak.
With household debt at an all-time high—and the median household owing over $80,000—it’s no wonder so many of us are stressed.
In fact, a May 2025 survey by Discover (yes, that Discover) is a good temperature check on people’s feelings about their debt:
We want to assure you that it doesn’t have to be this way.
But when almost half of Americans say money is negatively impacting their mental health—causing “anxiety, stress, worrisome thoughts, loss of sleep, [and] depression”(Bankrate)—something is very wrong.
So debt isn’t just a money problem—it’s a public health problem.
Now that we’ve identified this weight, let’s name it, which itself can provide some relief.
“I’m just stressed.” Have you ever caught yourself saying that…and then saying it again?
Occasional stress is normal, but cumulative, long-term stress is not (or at least it shouldn’t be).
When excessive debt leads to ongoing stress that impacts your well-being, it’s often referred to as “debt stress syndrome.” While not an official diagnosis, the effects are very real and can take a serious toll on your health.
Even Healthline discusses the toll finance-related stress can take (which can certainly be due to debt):
All of this can impact your relationships, decisions, and confidence.
Does any of this sound familiar?
If so, read on. We’ll now take a closer look at how debt stress syndrome can affect your brain and body.
Here’s the full-body toll debt can take on you—both mental and physical (Debt.org) We urge you to go through these and identify which effects you’re experiencing, if any.
Debt’s effects on mental health include:
While debt’s effects on physical health include:
These symptoms can lead to vicious cycles that worsen your health and/or your financial situation. For example, they may prompt someone to turn to unhealthy coping behaviors like gambling, hoarding, and substance abuse.
If that happens (or is happening), it doesn’t mean you’re “irresponsible” or any other negative label. It’s just a response to excessive stress. And it’s about replacing unhealthy responses with healthy ones.
We want to emphasize that chronic stress puts your health at risk, but action breaks the cycle! Even small actions, like the one you’re taking now by reading this article. Here are more steps you can take to help.
Before we get into these, we want you to know that progress matters more than perfection. Try these one at a time, at your own pace. And don’t be hard on yourself if you stumble. Just get up, dust yourself off, and keep going.
Avoidance adds anxiety.
Name what your actual fear is (for example, “I feel stuck”). You’ll almost instantly start to feel a little better.
Listing out your debts gives you more clarity and control.
Even if it’s scary at first, seeing the full picture reduces the unknowns—and makes it less scary. It’s kind of like turning on a light in a dark room. A lot of what makes us afraid is the unknown.
Just having a plan, even a simple one, brings hope.
Use tools like the snowball or avalanche methods, or seek help from a nonprofit like GreenPath to assist you. Avoid declaring bankruptcy: there are many alternatives to bankruptcy, which should always be a last resort.
Set up auto-payments or transfers to reduce the mental load of managing bills. It really does simplify your life.
Did you pay $25? Great! Every single step matters and builds momentum.
Setting aside $100 in a savings account can reduce panic when surprise expenses hit. Start small.
Whether it’s a friend, relative, or financial counselor, don’t carry this alone. Connection can bring tangible relief.
Debt is not a character flaw.
It’s a widespread problem that many people are facing (as we covered above). Be kind to yourself. You’re doing what you can to work through it.
If social media or traditional media makes your debt stress worse, just turn it off, or limit your use.
Your journey is your own. You don’t need to compare yourself to anyone else.
Finally, we’ll mention one more strategy that’s been effective for many people we’ve worked with: a debt management program.
A debt management program (DMP) is a structured, assisted solution that leads you to financial and emotional relief.
What is it exactly?
Well, it’s a way of consolidating your debts, but it’s not a consolidation loan. It’s a personalized roadmap for paying off your debts, usually offered through a nonprofit credit counseling agency like GreenPath.
A great part of it is that we advocate for you. We work with more than 550 creditors nationwide with the goal of securing lower interest rates and waived fees that can save you both time and money.
You’ll be supported the entire way, from the day you contact us to the day you make your final debt payment.
The emotional relief can be felt after you enroll: fewer bills, fewer collection calls, and a clear payoff date. It’s one of the most powerful tools for reclaiming financial stability and peace of mind.
It’s Going to Be Okay
Hopefully you’re already feeling a little less stressed by the end of this article. You’re now equipped with more knowledge and actions to take.
Just remember, you’re not alone. And your debt is manageable.
GreenPath is here to help. We’re a nonprofit whose mission is to empower people to lead financially healthy lives—and help free as many people as we can from debt stress syndrome. Our compassionate, certified counselors would love to speak with you about your situation.
This article is shared by our partners at GreenPath Financial Wellness, a trusted national non-profit.