How to Understand and Conquer Financial Phobia
UpdatedApr 29, 2025
- Financial phobia can cause you to ignore your finances rather than getting a handle on them.
- Slowly working to conquer your fears could get you to a better place financially.
- There’s professional help for financial phobia.
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Have you ever avoided your mailbox because you didn’t want to deal with your credit card bills? Does the thought of balancing your checkbook make your stomach turn? If so, you may suffer from financial phobia.
Financial phobia is the fear of dealing with personal financial issues like budgeting, investing, paying bills, researching debt relief, or even checking your bank account. It can come in many different forms, from refusing to open your credit card bills to panicking or feeling paralyzed every time you think about your financial situation.
If you’re noticing similar symptoms and behavior, there are steps you can take to overcome your fear and improve your financial situation. But first, it’s important to understand the causes and risks of financial phobia so you can make a plan to conquer it.
Financial Phobia Affects Many People
If you’ve experienced financial phobia, you’re not alone. A 2024 Discover survey found that 80% of Americans have some level of anxiety about their financial situation, with 34% experiencing moderate or severe anxiety. The problem is so extreme that 41% of Gen-Z Americans avoid looking at their bank account balances.
More recently, Capital One found that 77% of Americans are anxious about their financial situation. And people who are stressed about their finances are less likely to save money, be mindful of their spending, or plan for unexpected costs.
What Causes Financial Phobia?
Some people experience financial phobia because they associate money with negative experiences like being in debt, losing a job, or having a serious financial emergency. Other people may have financial phobia because of arguments they’ve had with loved ones over money, or because they never learned about personal finance, and simply don’t know how to deal with it.
Many people with financial fears feel they’ve lost control over their finances and don’t know how to regain it. Overcoming financial phobia could help you get to a better place financially.
What Are the Risks of Financial Phobia?
If you’re suffering from financial phobia, here are some of the consequences that could result.
You risk overdrawing your accounts if you don’t check your bank statements.
You could miss payments if you don’t check your bills regularly, leading to credit score damage.
If you aren’t checking your credit report and credit scores, you may not know if you’ve been a victim of identity theft.
Banking errors, overdrafts, and missed payments could lead to fees, higher interest rates, and fraudulent charges.
Saving for long-term goals could be difficult if you don’t monitor your accounts.
The bottom line is that ignoring your finances could end up being much scarier than confronting your financial issues head-on. While it may be hard to face your fears, it is possible to overcome financial phobia and deal with money matters in a positive way.
How to Cope with Financial Phobia
The first step in dealing with financial phobia is admitting that it exists. Acknowledging your fear can help you set up a plan to overcome it. Here are a few techniques that could help you get rid of financial phobia, or at least find ways to work around it.
Understand where your fear is coming from. Knowing why you’re struggling with financial phobia could be key to overcoming it. For example, opening your credit card bills might trigger your fear of debt. Checking your bank account balance might trigger your fear of not having enough savings.
Take it slowly. One of the best ways to deal with financial phobia is to address it in small doses. Every small step you take, like using a budgeting app to monitor your monthly spending, could help you rebuild a healthy relationship with your finances.
Talk to someone you trust. It’s important to have a support system to deal with financial phobia. Identify a friend or family member to call when you’re struggling, and reach out when you need to.
Talk to a therapist. A therapist may be able to help you get to the root of your financial phobia so you can take steps to overcome it. They may also be able to share techniques for dealing with stress in general.
Build an emergency fund. Knowing you have enough money in the bank to ride out a period of unemployment or cover an unexpected expense could help you feel less anxious about your financial situation as a whole.
Get Professional Help
You don’t have to deal with financial phobia on your own, especially if you’re struggling with debt. Freedom Debt Relief is here to help you understand your options for dealing with debt, including our debt relief program. Our Certified Debt Consultants talk to people every day who are anxious and worried about their debt, and can help you find a solution. Find out if you qualify right now.
By adjusting your attitude about your finances, creating a support system, and getting help with financial phobia, you can change your mindset and empower yourself to make smart money-related decisions going forward.
Insights into debt relief demographics
We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during November 2024. The data provides insights about key characteristics of debt relief seekers.
Age distribution of debt relief seekers
Debt affects people of all ages, but some age groups are more likely to seek help than others. In November 2024, the average age of people seeking debt relief was 49. The data showed that 17% were over 65, and 18% were between 26-35. Financial hardships can affect anyone, no matter their age, and you can never be too young or too old to seek help.
Home-secured debt – average debt by selected states
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) (using 2022 data) the average home-secured debt for those with a balance was $212,498. The percentage of families with mortgage debt was 42%.
In November 2024, 25% of the debt relief seekers had a mortgage. The average mortgage debt was $236504, and the average monthly payment was $1882.
Here is a quick look at the top five states by average mortgage balance.
| State | % with a mortgage balance | Average mortgage balance | Average monthly payment | |
|---|---|---|---|---|
| California | 20 | $391,113 | $2,710 | |
| District of Columbia | 17 | $339,911 | $2,330 | |
| Utah | 31 | $316,936 | $2,094 | |
| Nevada | 25 | $306,258 | $2,082 | |
| Massachusetts | 28 | $297,524 | $2,290 |
The statistics are based on all debt relief seekers with a mortgage loan balance over $0.
Housing is an important part of a household's expenses. Remember to consider all your debts when looking for a way to get debt relief.
Manage Your Finances Better
Understanding your debt situation is crucial. It could be high credit use, many tradelines, or a low FICO score. The right debt relief can help you manage your money. Begin your journey to financial stability by taking the first step.
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What happens when you don’t check your credit reports?
If you don’t check your credit reports, you won’t know what’s on them. You could end up with credit score damage because you don’t have a handle on your debts and accounts. You also risk becoming a victim of financial fraud.
What happens when you don’t check your bank account balance?
When you ignore your bank account balance, you risk overdrawing it by spending more money than you have. That could result in costly fees.
What happens when you don’t budget?
If you don’t budget, it can be harder to meet financial goals and avoid debt. Budgeting helps you understand what your bills look like so you can put every dollar you earn to good use.
