Here’s How Stressed People Are About Money in Red vs. Blue States
Written by
Heather Altamirano
Edited by
Zuri Anderson
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Americans are in major debt and it’s taking an emotional toll on many. According to the Federal Reserve Bank of New York, household debt has increased a whopping $93 billion in the fourth quarter of 2024 and Americans now owe a collective $18.04 trillion. Debt is rising across the board and people are feeling the strain.
Credit card balances skyrocketed $45 billion from the previous quarter, per the Federal Reserve totalling $1.21 trillion at the end of last year, while auto loans rose $11 billion and reached $1.66 trillion. Mortgages, student loans and HELOC balances have also significantly risen.
Americans are tackling debt and handling the stress in different ways depending on several factors, including if you live in a red or blue state, per a new survey from AmeriSave Mortgage.
Here’s how debt is affecting people depending on location.
People in Blue States Are More Stressed During Holidays
Financial stress hits everyone, but it varies depending on the area the study revealed. Homeowners who have left leaning political ideas are 1.7 times more likely to be “stressed but managing” their debt.
However, the time of year matters. The holidays bring on added financial pressure and people who live in blue states are twice as likely to feel more overwhelmed by debt during the festive season.
People in Red States Have Higher Stress During Financial Emergencies
If there’s one thing to count on it’s unexpected mishaps. Whether it’s a huge surprise tax bill, a job loss or health issue, there’s plenty of unforeseen circumstances that can cause a financial blow. When life throws curve balls that require financial resources, people in red states experience the most stress, per the study.
In addition, people in red states are twice as likely to feel distressed by debt multiple times a month.
How Geography Plays a Role
The national median household income is $80,610, per the United States Census Bureau, and households in blue states typically exceed that amount, according to Visual Capitalist. Many homes in blue states are situated in coastal areas and major cities where housing costs more, whereas people in red states tend to have lower incomes, live in more rural areas where housing is more affordable.
Why does that matter? If your home has a higher value because of the location, you have more equity to work with and use it to pay down debt, the study pointed out. On the other hand, if you live in a more affordable region where home values don’t rise as quickly, the equity is limited and might rely on other strategies to take on debt.
No matter where you live, debt is overwhelming and it causes about one-fourth (25.4%) of homeowners to feel overburdened by debt, while 9.7% are overwhelmed. However, with the right strategic planning and debt management, it can get under control and even completely paid off.
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