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Which types of debts are the most stressful?

On Behalf of | Oct 15, 2019 | Personal Bankruptcy

If you’re finding yourself dealing with a significant amount of debt, you know how stressful it can be. However, some kinds of debt have a greater impact on our quality of life than others.

A study published by The Motley Fool found that 83% of people without debt reported that they were satisfied with their lives — compared to just 70% of those with debt. When they broke it down to the type of debt people had, they determined that five types of debt most impacted people’s quality of life. Let’s look at the findings.

Medical debt is by far the most stressful debt. In large part, that’s because the cause of the debt is often a serious injury or health issue, which is already stressful. Even if the cause of the medical bills is in the past, people are reminded of it every time they get another bill or collection call. Further, medical bills can be very high and often need to be paid in full relatively quickly.

Student loans came in second, likely because student loan debt can easily run into tens of thousands of dollars. Those with student loan debt often find it hard to keep up with payments and see decades of payments ahead of them.

There was a tie for third place between personal loan debt and credit card debt. Auto loan debt came in fourth, and mortgage debt was fifth. Many Americans have at least one, if not all, of these types of debt. They aren’t as stressful when you’re able to pay what you owe each month (or not carry over a balance on your credit card debt). Further — particularly with a home or car loan — you have something of value that you can enjoy every day in exchange for that debt.

When you’re unable to keep up with your debt, no matter what type it is, your quality of life and your physical and emotional well-being can suffer. If you feel like you’re drowning in debt, it’s a good idea to explore your debt relief options.

“Attorney Advertising Disclaimer: Under Federal Law, we have been designated a Debt Relief Agency and we help people file for bankruptcy relief under the Bankruptcy Code. This information is not intended as legal advice and no attorney-client relationship is created. Results may vary. Results not guaranteed. Dramatization: Not actual clients in pictures and videos. — Thomas C. McBride, attorney in Alexandria, LA.”

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