Financial Stress Is on the Rise

By Mary Kearl and Caroline Howard

If anxiety over "What's NOT in your wallet?" seems to be growing along with your health problems, you're not alone.

A recent AP/AOL survey, Debt Stress in the United States, found that the average level of debt-related stress experienced by American adults has grown significantly in the four years since a similar survey was conducted.

The survey also found that those with higher stress levels were more likely to experience physical and mental conditions, including headaches, back pain, depression, severe anxiety, ulcers and heart problems.

In other words, debt -- and it's psychophysical manifestations -- have become a national pain in the neck. And head. And stomach.

The Big Picture

It's hard not to feel squeezed. The net worth of U.S. households fell 3 percent in the first quarter of 2008, according to a report just released by the Federal Reserve. Americans owe an average of $127,000 per household, according to Moody's Economy.com, with about 19.3 percent of after-tax income going towards paying financial obligations.

Even with the dramatic increases in personal bankruptcies and mortgage defaults, consumer spending hasn't been affected. Americans "are spending everything in their wallet and borrowing more," Michael Englund, senior economist with Action Economics told CNNMoney.com.

There's no map as to exactly where this financial crisis will go, but it is clear that consumers are just sick over it.

How Financial Worries Can Stress Out Your Immune System

For those with high levels of stress over personal or family debt, "life often is plagued by considerable unhappiness and serious stress-related illnesses," explains survey author and research psychologist Paul J. Lavrakas, Ph.D.

Using a Debt Stress Index (DSI) that calculates household worry, stress and concern about debt, about one in five adults who reported moderately high or high levels of debt stress also reported higher incidents of mental and physical health deterioration.

"Adults with greater debt stress are significantly more likely to have had stress-related health problems in the past 12 months," says Dr. Lavrakas.

When compared with those with lower stress, high stress people were more than 13 times to toss and turn at night, more than seven times as likely to experience severe anxiety and nearly seven times as likely to lash out at others. Severe depression showed up nearly six times as often.

Debt stressors are also nearly four times as likely to have ulcers or other digestive tract problems and twice as likely to have had heart problems and migraines and headaches.

Who Has the Most Debt Stress?

Surprisingly, it is not the unemployed who are hurting. The profile is working mothers without a college education who in 2007 had a household income either between $10,000 and $19,999 or $60,000 and $79,000. And they're democrats.

Conversely, the relationship between debt and stress is less strong for republican and retired college-educated men who do not have children living at home whose income was either more than $150,000 or less than $10,000 in 2007.

What Can You Do?

Money can't make you happy, but if you manage it well you can create a happier and healthier life, says AOL Coach Jean Chatzky. Paying down your actual debt is only part of it. You need to tackle both your credit and your health.

First and foremost, come up with a realistic budget. To find a reputable credit counseling agency, go to the U.S. Trustee's web site. It has a list of approved firms along with their contact information.

Next, ask yourself, How do I cope with stress? Too many of us indulge in strategies that only exacerbate our physical and mental health problems, including overeating, abusing alcohol or isolating.

Instead, seek out a friend you can talk to or other types of social or psychological support. Also, make a habit of cheap or free ways to de-stress. It doesn't cost a dime to take your dog for a long walk or toss a ball with your kids after work.

Also, there may be other pressures in your life that need managing. How's your job? Your marriage? Some psychologists report that a strong and supportive marriage can be as protective of health as diet or exercise.