Originally published by BadCredit.org.
With all the financial responsibilities the average American has to juggle these days, it’s becoming increasingly common to hit regular, small financial setbacks. These could include discovering a drop in our credit score, missing a credit card payment, or finding our bank account has dipped into overdraft; in the grand scheme of things, each element on its own is not insurmountable, but if a few happen one after the other, it can cause a knock-on effect, leading to worry and anxiety.
Because these events are smaller than, say, having the huge and hideous impact of a job loss or home repossession, they can just quietly chip away at our individual mental well-being. This, in turn, can have a negative effect on our health, causing anything from sleep disturbances to increased risk of cardiovascular issues and chronic stress.
To better understand how often these financial micro-stresses affect people, and what their impact can be, BadCredit.org carried out a survey of 3,000 respondents, which aimed to quantify how frequently these micro-stresses occur and also identify which specific financial events contribute most significantly to stress levels. Analyzing the data by state, it was found that the average Marylander suffers an average of 18 financial micro-stresses a week, or 936 per year.
BadCredit.org also wanted to identify which specific financial events contributed most significantly to Marylanders’ stress levels, and coming out on top was unexpected fees or charges (21%). It’s true that there is nothing more frustrating than thinking you know what price you’re going to pay for something, only to spy that hidden extra somewhere in small print on the receipt.
In second place, with 20% of people citing this reason, was missing a bill payment. It’s easily done, especially if we have several different bills to pay over the course of a month, but somehow seeing that red ‘REMINDER’ email or letter can send our blood pressure skyrocketing.
In third place (18%) was our credit score dropping; this means it can be harder or trickier to get credit, which, when we want to make a big purchase like furniture, tech, or a vacation, is incredibly inconvenient.
The survey also found that fifteen percent of us have difficulty tracking our spending, meaning that certain payments might slip through the net, and we’re left with less money at the end of the month. That’s followed by overdrafting on a bank account (14%), which inevitably incurs another charge, followed by a declined credit card transaction (10%) – which adds embarrassment on top of the worry, particularly if you’re in a busy store with a line of people behind you. Only 1% of us had issues with direct deposits.
BadCredit.org’s survey went on to ask how much financial micro-stresses affect our mental health. Nearly a third of Marylanders said ‘significantly’ (31%), while nearly half said ‘moderately’ (49%). A very laid-back 20% said only ‘slightly’.
Despite the phrase, ‘a problem shared is a problem halved,’ over half of (55%) keep the fact that we’re suffering from regular micro-stresses to ourselves, with only 45% discussing it with friends or family.
A lot of us lie awake worrying about our financial micro-stresses too; over two-thirds of us (68%) admit this keeps us up at night and affects our sleep. A fortunate 32% can sleep through any amount of worry.
Finally, BadCredit.org asked whether financial micro-stresses have a cumulative effect on our overall stress levels, and over three-quarters of us (76%) admitted they do.
“Financial micro-stresses may seem small on their own, but they can accumulate and quietly erode our well-being over time. It’s crucial for people to recognize these ongoing pressures and address them proactively – whether through better financial planning, seeking support from loved ones, or utilizing resources like debt management tools,” says Jon McDonald, senior editor from BadCredit.org.
