Survey: More Women Than Men Are Stressed About Debt
- Data shows that women are more stressed about debt than men.
- Paying off existing debt and minimizing future debt could reduce your stress.
- Having emergency savings could lower your chances of landing in debt in the future.
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It's not an unusual thing to carry some amount of debt, whether it's a mortgage, auto loan, or credit card balance. But if your debt is causing you stress, it's time to do something about it.
A survey conducted by Freedom Debt Relief found that 49% of women feel very stressed over debt. Only 42% of men say the same. A recent GoBankingRates survey had similar results, with 34% of women saying they have extreme financial stress versus 24% of men.
The reality is that debt-induced stress doesn’t discriminate. It can be a hard thing for anyone to deal with. But you can deal with it. With the right approach, you can tackle your debt and take steps to avoid landing in debt again in the future.
How to Pay Off Existing Debt
If your debt is causing you stress, the sooner you come up with a plan for paying it off, the better you might feel. To that end, it’s a good idea to break your debts down into good debt versus bad debt.
Good debt is debt that helps you reach a financial goal or improve your finances, like a mortgage or student loans. Bad debt is debt that costs you money without any long-term financial upside, like credit card debt.
It’s usually the case that bad debt comes with higher interest rates than good debt. Take a look at your debts and categorize them. Then, within each category, list them from highest to lowest interest rate, and tackle them in that order.
So if you have student loans charging you 7% and a credit card balance charging you 26%, you’ll want to pay down the credit card first. From there, you can move on to your student loans.
Of course, you’ll need money to pay off your current debts. Setting up a budget should help you get a good sense of what your monthly bills look like. And it may help you identify ways to spend less, freeing up cash to pay off debt. You could also pick up a side hustle and use the extra money you earn to get out of debt.
But if you have so much debt that it’s overwhelming, don’t hesitate to get help. A debt relief company may be able to negotiate some of your debts so you’re able to settle them for less than what you owe.
Build an Emergency Fund to Avoid Future Debt
A big part of avoiding debt-related stress is to set yourself up with money to fall back on when unexpected bills arise. Once you’ve managed to make good progress paying off your debt, start building an emergency fund. If you don’t have a savings account already, open one so you have a place to keep that money.
Not only can an emergency fund help you cover unplanned bills, like home or car repairs, but it could help you avoid racking up debt during a period of unemployment. For many people, it’s a good idea to have a three-month emergency fund at a minimum. That means having enough money in savings to pay three months of essential bills.
But do recognize that building an emergency fund takes time. It’s a good idea to set small savings milestones and work your way up as you can.
For example, say you spend $2,500 a month on essential expenses. A three-month emergency fund requires you to have $7,500, which is a lot of money to save up.
What you may want to do is set an initial savings goal of $500. Once you get there, set another $500 savings goal, and repeat.
And remember, even if $7,500 represents your “ideal” emergency fund, having $500 in savings is very helpful in its own right. That’s $500 in debt you may be able to avoid the next time a surprise bill lands in your lap.
Know How Much Future Debt to Take on (or Not)
With the right strategy, you can work your way out of debt and reduce some of your financial stress. But to avoid future financial stress, it’s important to know how much debt to take on.
It’s best to avoid bad debt like credit card debt to the greatest extent possible. If you’re stuck having to fix your car for $400 and you don’t have the cash in savings, charging the expense on a credit card may be your best option. But aim to avoid racking up credit card debt for non-emergency purchases, like vacations.
It’s also important not to take on too much good debt, either. As a general rule, it’s best to keep your housing costs to 30% of your take-home pay or less, so be mindful of that number when signing a mortgage. Similarly, transportation costs should ideally be kept to 10% to 15% of your pay, so that’s something to note when you’re shopping for a car and signing an auto loan.
Stressed About Debt? Take the Steps to Tackle It
While some data may point to women being more stressed out about debt than men, debt is a hard thing to manage no matter what. If you’re overwhelmed with debt, there may be solutions for negotiating it or paying it off so you can move forward. And if you follow that up with building an emergency fund and making debt-related decisions in line with your goals, you can hopefully keep your stress levels down on a long-term basis.
Debt relief stats and trends
We looked at a sample of data from Freedom Debt Relief of people seeking a debt relief program during July 2025. The data uncovers various trends and statistics about people seeking debt help.
Credit Card Usage by Age Group
No matter your age, navigating debt can be daunting. These insights into the credit profiles of debt relief seekers shed light on common financial struggles and paths to recovery.
Here's a snapshot of credit behaviors for July 2025 by age groups among debt relief seekers:
| Age group | Number of open credit cards | Average (total) Balance | Average monthly payment |
|---|---|---|---|
| 18-25 | 3 | $8,893 | $283 |
| 26-35 | 5 | $11,976 | $366 |
| 35-50 | 6 | $16,081 | $431 |
| 51-65 | 8 | $17,231 | $523 |
| Over 65 | 8 | $18,053 | $499 |
| All | 7 | $15,142 | $424 |
Whether you're starting your financial journey or planning for retirement, these insights can empower you to make informed decisions and work towards a more secure financial future
Personal loan balances – average debt by selected states
Personal loans are one type of installment loans. Generally you borrow at a fixed rate with a fixed monthly payment.
In July 2025, 44% of the debt relief seekers had a personal loan. The average personal loan was $10,718, and the average monthly payment was $362.
Here's a quick look at the top five states by average personal loan balance.
| State | % with personal loan | Avg personal loan balance | Average personal loan original amount | Avg personal loan monthly payment |
|---|---|---|---|---|
| Massachusetts | 42% | $14,653 | $21,431 | $474 |
| Connecticut | 44% | $13,546 | $21,163 | $475 |
| New York | 37% | $13,499 | $20,464 | $447 |
| New Hampshire | 49% | $13,206 | $18,625 | $410 |
| Minnesota | 44% | $12,944 | $18,836 | $470 |
Personal loans are an important financial tool. You can use them for debt consolidation. You can also use them to make large purchases, do home improvements, or for other purposes.
Support for a Brighter Future
No matter your age, FICO score, or debt level, seeking debt relief can provide the support you need. Take control of your financial future by taking the first step today.
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Author Information
Written by
Maurie Backman
Maurie Backman is a personal finance writer with over 10 years of experience. Her coverage areas include retirement, investing, real estate, and credit and debt management.
Reviewed by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
What are 5 ways to pay down credit card debt?
The avalanche method that prioritizes paying off the debts with the highest interest rates first.
The snowball method that prioritizes paying off the smallest balance first.
A debt management plan, which takes 3-5 years and pays off all your debts in full.
A debt consolidation loan, which uses one loan to pay off multiple smaller debts.
Debt resolution, where your creditors agree to accept less than the full amount owed.
How long does it take to build an emergency fund?
Try to save the first $1,000 within 6-12 months. Be aggressive and make sacrifices. Challenge yourself to make a budget, look for ways to save, and set milestones to reach and celebrate.
Here’s how one family of four might do it if their goal is to save $2,500.
Drag everything unneeded out of the closets and sell it, netting $700
Give up two subscriptions: $40 per month
Shave 10% off the grocery bill: $60 per month
Switch mobile plans: $50 per month
Cut one restaurant dinner out: $100 per month
Cut 10% of driving: $25 per month
Goal reached in less than 7 months.
Should I focus on paying off my debt or building my emergency fund?
Paying off debt is the first priority, but having some money saved for unplanned expenses can help keep you from going further into debt. A good rule of thumb is to save a modest amount, say $1,000 or $1,500, and then focus on paying down your debts. The third step would be to increase your emergency fund.
Debt Solutions
