New research reveals a counterintuitive pattern in how Americans experience financial anxiety
We've all heard the saying "more money, more problems"—but what about more debt? A fascinating new study has turned conventional wisdom on its head, revealing that when it comes to debt stress, bigger numbers don't always mean bigger worries.
The Debt Stress Paradox
Here's something that might surprise you: people with over $500,000 in debt reported lower stress levels than those owing just $3,000-$5,000.
A recent survey of 1,186 Americans conducted for JG Wentworth found that debt stress follows a peculiar pattern. It starts low for small amounts (averaging 1.5 out of 5 for debts under $500), climbs to a peak of 4.2 for those owing $75,000-$99,999, then actually declines as debt amounts soar higher.
Those with the highest debt loads—over half a million dollars—reported stress levels of just 2.5 out of 5. That's lower than people with relatively modest debts of $2,500-$4,999, who averaged 3.3.
What's Behind "Debt Numbness"?
Researchers call this phenomenon "debt numbness"—the idea that when numbers become so large they feel abstract, our brains simply disengage. It's like the difference between losing a $20 bill (ouch!) versus hearing about a trillion-dollar national debt (shrug). The human mind struggles to process truly massive numbers in an emotionally meaningful way.
The Daily Reality of Debt Worry
Despite this numbness effect at extreme levels, debt remains a major source of daily stress for most Americans:
- 46.5% worry about debt every single day
- 50% avoid looking at their bank statements
- 54.6% feel embarrassed about their debt (even though 98% of respondents had some debt)
The top concerns keeping people up at night include:
- Falling behind on payments (53.7%)
- Not having enough for retirement (53.7%)
- Discovering balances higher than expected (53.5%)
- Risk of losing homes or belongings (53.3%)
- Leaving little inheritance for children (51.8%)
Age Makes All the Difference
One of the most striking findings was how dramatically stress levels varied by age:
Young Adults (18-26): Nearly half (47.9%) rated their debt stress at just 1 out of 5, with another 48.1% rating it at 2. They're remarkably chill about owing money.
Middle-Aged Adults (27-42): Similar to younger adults, with 84.1% keeping stress levels in the 1-2 range.
Older Adults (43+): This is where things get serious. These respondents were most likely to report mid-level stress (32.5% chose a 3), and among those aged 43-59, nearly a quarter (23.2%) maxed out the stress scale at 5.
Why the age gap? Younger people likely feel they have decades to earn their way out of debt, while older adults face the approaching reality of retirement with limited time to recover financially.
Not All Debt Is Created Equal
The type of debt matters enormously for stress levels:
Credit Cards: The stress champion, peaking at 4 out of 5 when additional balances hit $30,000, then declining due to the numbness effect.
Auto Loans: The only debt type that didn't follow the numbness pattern. Stress climbed steadily from 2.3 to 4.0 as amounts increased, likely because cars depreciate while you're still paying for them.
Student Loans: Rose steadily from 2.4 to about 3.5 as balances grew to $40,000.
Mortgages: Generated surprisingly controlled responses, probably because homes typically appreciate in value.
Buy Now, Pay Later (BNPL): Rose to 3.8 with just $10,000 in additional debt—suggesting these newer payment methods pack a psychological punch.
The Silver Lining
Despite all this worry, Americans remain surprisingly optimistic about their financial futures:
- 53.4% feel reassured knowing debt is common
- 50.5% consider their debt manageable
- 50.2% believe they'll earn enough to pay it off eventually
What This Means for You
If you're struggling with debt stress, this research offers several insights:
If you're feeling overwhelmed by large amounts: You might be experiencing debt numbness. While this can provide emotional relief, don't let it prevent you from taking action. Try breaking your debt into smaller, more concrete goals.
If moderate debts are causing major stress: You're not alone—this is actually when stress peaks. Consider debt consolidation, payment plans, or speaking with a financial counselor.
If you're avoiding your bank statements: Half of Americans do this, but it only makes problems worse. Set a regular "money date" with yourself to face the numbers head-on.
This research reveals that our relationship with debt is far more psychological than mathematical. Whether you owe $5,000 or $500,000, understanding how your mind processes financial stress is the first step toward managing it effectively.
Remember, if debt stress is significantly impacting your daily life, don't hesitate to reach out to a financial counselor or advisor. Sometimes an outside perspective can help make those overwhelming numbers feel manageable again.
Study methodology: Survey conducted in July 2025 of 1,186 U.S. adults, with participants rating stress on a five-point scale across seven debt categories. The majority of respondents (93%) were under 43 years old, with nearly all earning under $50,000 annually.