Nearly half of Americans say finances are taking toll on their mental health
More than a third of households have more credit card debt than emergency savings
Jason Furman, former National Economic Council chair under Obama, says there is nothing structural about inflation on 'Barron's Roundtable.'
About half of U.S. adults are struggling with their mental health because of their financial situation.
Forty-seven percent of adults say concerns about money have, at least occasionally, caused anxiety, stress, worrisome thoughts, loss of sleep, depression or other effects, according to Bankrate’s latest Money and Mental Health Survey.
About 65% of them say their biggest concern is inflation and rising prices, and nearly 60% say their stress derives from paying for everyday expenses such as groceries and utilities. About 56% say they are worried about having enough emergency savings, and 47% are most concerned about being in debt, according to the survey.
AMERICANS EXPECT HIGH INFLATION TO STICK AROUND IN LATEST NY FED SURVEY
Nearly half of Americans admit their financial situations are taking a toll on their mental health. (iStock / iStock)
"That's why this is such an important strain. In fact, now we're talking about necessities. People are worried about daily expenses," Bankrate senior industry analyst Ted Rossman told FOX Business. "They're worried about rent and groceries and other near term bills."
As of November, over 60% of households were living paycheck to paycheck, according to data from LendingClub.
INFLATION REDUCES BUYING POWER AS $100 GOES A LOT LESS FAR THESE DAYS
Meanwhile, a January Bankrate report underscored how more than a third of U.S. consumers have more credit card debt than emergency savings.
Rossman blamed persisting inflation, which has fallen considerably from a peak of 9.1%, but progress has largely flatlined since the summer.
The aforementioned data, according to Rossman, underscores how "a lot of people are very close to the edge."
Notably, "people don't feel good because inflation is gobbling up whatever gains they are making," he added.
More than a third of U.S. consumers have more credit card debt than they have emergency savings. (REUTERS/Brian Snyder/File Photo / Reuters Photos)
To make matters worse, Americans are even bracing for high inflation to stick around over the next few years, according to a key Federal Reserve Bank of New York survey published Monday.
The stress can be even more unfathomable for the main financial contributor of the family, Grant Gallagher, the head of wellbeing at Affinity Federal Credit Union, told FOX Business.
"They shoulder the emotional burden of paying for essentials, and when they can’t, or even struggle to do so, they feel like a failure," said Gallagher, who also blamed inflation for inflicting a lot of this stress.
Even if someone is able to afford and make the payments, whether it is related to student loans or credit cards, the "lack of visible progress for decades long loans such as student loans or mortgages can be disheartening," he added.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Not only that, but with higher cost of essentials, Gallagher also said the pressure to earn a high income or maintain a particular lifestyle is increasingly growing, which in itself can lead to chronic stress, burnout, anxiety and even lead to feelings of inadequacy.
"What was once considered a high income is now what's needed to afford the essentials," he said, citing a recent GOBankingRates report, which revealed that on average, 22 states require a net income over $80,000 to afford the average cost of what most consider the essentials for a family of four.
FOX Business' Megan Henney contributed to this report.