The 24 Financial Disruptions Stressing Americans Out

Financial stability only lasts so long before something new comes up to make things complicated or stretch our wallets thin. From job uncertainty to soaring healthcare costs and stagnant wages to the looming shadow of debt, several financial disruptions are causing stress in households nationwide. According to CNBC, over 77% of Americans expressed being anxious about their financial situation as of 2024.

1. Unemployment

For many Americans, not having a job and constantly applying but not hearing anything back is devastating. Not only does it carry consistent money worries, but the emotional toll makes it even harder. Unfortunately, government assistance isn’t always an option, and if you have children, it just adds to the distress of not having what you need.

Applying for jobs is a full-time job in a lot of ways because they spend their entire days trying to find something they are qualified for. Rejections are ample, and layoffs seem to be so common these days.

2. High Healthcare Costs

Americans grapple with soaring healthcare costs every day. Medical expenses, often reaching absurd levels even with insurance, destroy budgets and contribute significantly to overall financial anxiety. The rising cost of healthcare affects your mental and physical well-being as you’re trying to figure out how you can afford to take care of yourself.

Even if you apply for healthcare through the government and receive a lower monthly rate, the deductibles are extremely high. Many Americans simply opt out of healthcare because they cannot afford it.

3. Student Loan Debt

The reality is that education should not be a commodity. It should be free with the goal of creating workers that contribute to society after graduation. At the very least, it shouldn’t cost hundreds of thousands of dollars. Many people took out at least a $20K loan because they couldn’t get enough financial aid and wouldn’t have otherwise been able to afford college.

The overwhelming weight of student loan debt feels crippling to those who are struggling to make payments. In contrast to their global peers, the scale of educational indebtedness in the United States surpasses norms.

4. Housing Expenses

Housing expenses are pivotal in shaping financial uncertainty, driven by the elevated costs associated with renting or owning residential properties. The idea of paying thousands monthly for a house or apartment you don’t own is wild, and it’s only getting worse.

Individuals struggle to balance housing expenditures against broader financial considerations within the ever-changing and unpredictable real estate market. Paying for a mortgage in America may be cheaper than paying rent, but the expense of owning a home feels astronomical.

5. Credit Card Debt

In the third quarter of 2023, Americans collectively carried a credit card balance of $1.079 trillion, surpassing the previous record of $1.031 trillion in the second quarter. This increase marks the highest balance since the New York Fed began tracking in 1999.

It’s a stark reminder of the financial challenges many face, as individuals may turn to credit cards to navigate unforeseen hurdles and, in the process, find themselves engulfed in accumulating debt.

6. Insufficient Emergency Savings

Saving up for a rainy day is wishful thinking for your average American. Many face the challenge of inadequate financial cushions, leaving them vulnerable to unexpected expenses. According to the Federal Reserve, these last few years have seen about 32% of adults saying they’d barely if at all, be able to handle minor emergencies that cost around $400. 

If an emergency comes up that’s more than $400, there seems to be no other option than to apply for various credit cards and loans to pay off later. This in turn adds to the overall debt rate in the country.

7. Inflation

Every year, milk and eggs become a little more expensive, and Americans surrender a little more of their purchasing power due to inflation. As prices rise, the real value of money diminishes, creating an ongoing financial concern for individuals and households strapped for cash.

As inflation occurs, the prices of everyday things increase and many Americans cannot keep up with the demand. Salaries and wages stay the same, while everything else around them rises in price.

8. Identity Theft

Experiencing identity theft or financial fraud is stressful due to the threat it poses to personal security and the ensuing complications in resolving the situation. The process involves extensive paperwork, numerous phone calls, and considerable time investment to rectify the issues.

Beyond the immediate inconvenience, individuals may also face uncertainties about potential impacts on their credit and overall financial stability. Long term, many face other legal issues with stolen identities, like not being able to prove they are themselves.

9. Stagnant Wages

Opportunities to get ahead in America become fewer and further in between daily. It’s easy to get frustrated when your income remains unchanged, mainly despite the rising cost of living. You constantly find yourself dealing with the difficulty of covering daily expenses and not progressing. This situation often prompts a need for budget adjustments and can limit one’s ability to save for the future. 

As Americans adjust their budgets, it becomes more difficult to discern how they are going to pay for the same basics they always have. Salaries remain the same and prices are constantly increasing.

10. Retirement Savings Concerns

Americans are stressed about social security and pension plan uncertainty due to several reasons. The average social security benefit of just over $1,500 a month is often insufficient to cover necessities. Also, there is a fear that the Social Security system may run out of money, tempting some to claim benefits early and potentially receive less than the maximum payout.

Lastly, the demographic shift with more people aging and fewer children being born is expected to place federal programs like Social Security under greater stress. 

11. Rising Interest Rates

The days of getting a loan for dirt cheap have long been over. Individuals contend with increased financial burdens as borrowing becomes more expensive, impacting everything from mortgages to credit cards. Securing a loan for a car or home is all the more difficult. Americans are finding it increasingly difficult to keep up with the loans they qualify for.

Many people across the country have taken out loans for a myriad of reasons. Thus, the debt crisis continues and increases as interest rates rise. 

12. Tax Burdens

The complexities of the tax system, coupled with changing regulations, contribute to mounting anxiety. In 2023, the tax situation was a bit of a headache for Americans. The average worker was hit with a tax burden of 30.5% on their pre-tax income of $70,1701.

The tax code seems to get more complex, and people already feel stressed during tax season when preparing their taxes and avoiding getting audited by the IRS. It is not uncommon these days to be added to a payment plan from the IRS, as many Americans do not get a tax refund and instead owe money back.

13. Stock Market Volatility

The nature of investing in stocks is inherently risky. Many American investors fear high inflation and more aggressive tightening by the U.S. Federal Reserve, which could impact economic and corporate earnings growth.

Volatility in the markets has left potential investors timid and resigned to sit this one out for fear of losing everything. As it’s proven that inflation is not going away anytime soon, it should come as no surprise that stock investing is an even trickier business than it used to be.

14. Economic Uncertainty

Economic uncertainty represents a significant source of stress for Americans. Amid everything going on, people wonder whether we’re headed for a recession and how they could prepare for one.

The lack of reassurance generates concerns about job stability and the ability to fulfill financial commitments. It also complicates financial planning for those who already don’t have the basics. 

15. Lack of Affordable Childcare

The exorbitant cost of childcare is debilitating, causing people to pay more than they can afford or bow out of the workforce altogether to take care of their children. This financial strain affects immediate budgets and prohibits many Americans from saving and building wealth.

For those who are interested in having children, taking account of just how much it will cost is imperative in America. Moreso than ever before, saving for college funds, groceries, bills, and pretty much everything under the sun is infinitely more difficult.

16. Cost of Living Increases

People struggle to keep up as expenses rise across various aspects of daily life. A single person in the U.S. needs $3,580 per month to survive. That figure keeps food, transportation, healthcare, and housing in mind; it doesn’t even include education! Not to mention, the minimum wage across the nation isn’t enough to live comfortably. 

If you have at least one child, that average cost of living increases substantially. Even in dual-income households, these increases are making it significantly difficult to sustain a comfortable lifestyle. 

17. Debt Collection

Debt collectors are more greedy than ever before. As aggressive practices increase, people face more pressure to settle debts, creating a challenging dynamic that impacts both short-term financial stability and the long-term ability to manage their funds.

As the national debt increases, so do various debt collectors who are scammers. These collectors attempt to gather your information to take even more than what you already don’t have. Be safe out there!

18. Low Credit Scores

There isn’t much you can do with a low credit score. The limitations it imposes on financial opportunities for Americans are prohibitively costly. From securing loans to accessing favorable interest rates, a low credit score becomes a significant impediment to achieving robust financial health.

The silver lining is that, the more credit card or student loan debt you accumulate, the better your credit score will be. While this system is ridiculous, as long as your minimum payments, it is pretty par for the course. 

19. Personal Loan Debt

Americans are taking out loans they can’t afford to achieve the “American dream.” It’s not just about the burden of repaying the loan but also its impact on their future planning. High-interest rates can make repayment challenging, leading to a cycle of debt.

Furthermore, the stress of personal loan debt can lead to mental health issues, such as anxiety and depression. It’s a heavy load, and worrying about paying off the debt can be overwhelming.

20. Expensive Fuel Prices 

Gas costs an arm and a leg nowadays. Escalating fuel prices affects personal budgets, increasing expenses for travel and commuting. Beyond individual wallets, businesses reliant on transportation pass on higher operational costs, contributing to a broader inflationary trend and elevating Americans’ overall cost of living.

Even driving fuel-efficient cars like Toyota’s Prius still require gas, and if you have budgeted for your weekly fill-up, you’ll find it even impacts the compact eco-friendly vehicles too.

21. Job Insecurity

The stress of having a job and being afraid to lose it is frustrating, especially if you have a family to feed. Americans feel the weight of this stress more as the days pass. With all the business closures and people feeling as though they’re being pushed out as tech innovation increases, they have to find a backup plan to stay afloat, just in case.

Logging on to LinkedIn has become more discouraging by the day. Each visit will have you sitting there hearing of another massive layoff in another industry. Backup plans are no longer an option, but a must.

22. Unable to Purchase Gifts

Even though gifts are optional, the cost of purchasing gifts for family and friends can be a stressor. For the holidays and big birthdays, it’s no secret that gift-giving is the reason for the season in America.

According to the American Psychological Association’s 2023 holiday stress survey, 40% of U.S. adults reported feeling stress over finding the right gifts for family and friends. Financial constraints can exacerbate this stress, the pressure to find the “perfect” gift, and the fear of disappointing the recipient.

23. Financial Illiteracy

A study found that a substantial number of adults in the United States felt anxiety and stress about their finances, and this stress was highly linked to low levels of financial literacy. This lack of financial knowledge can lead to problematic financial behaviors and decreased financial security.

The American school system does not necessarily enforce classes that teach financial literacy. Thus, when the children of the country grow into adults, they have a tendency to mismanage their incomes and spending. 

24. Utility Costs

With the onset of winter, home heating costs are rising nationwide, and many Americans are spending more time inside their homes, which can affect utility bills as the lights stay on longer and more energy is required to heat homes.

48% of Americans are stressed about the cost of their utility bills, and 1 in 6 are having trouble paying bills on time. The inability to pay can lead to dire consequences such as utility shut-off. Many people feel utility costs will be higher in 2023 than in past years.