May 7, 2025

The Mental Toll of Being Cash Poor and Credit Rich Is Getting Worse

2025 Findings Highlight How Juggling Mounting Fees, Student Loans, And Inflation Are Becoming Too Much For Middle Class Americans

Los Angeles, CA, May 6, 2025 — SoLo Funds , the US’s largest community finance platform, is announcing today data from the The 2025 Cash Poor Report that depicts the negative impacts that living paycheck-to-paycheck has on American consumers’ overall well-being. The comprehensive survey examines this consumer’s financial experience and the true total cost of borrowing money over a 12-month period from common options to cover unplanned expenses. This year’s report reveals that 77% report the past 12 months have been financially stressful versus relaxed (23%), as well as 36% of cash-poor Americans suffering from poor mental health, such as depression or anxiety as a result of money-related stress.

The 2025 Cash Poor Report was conducted in partnership with Opinium Research, Pace University, The Global Black Economic Forum, The Aspen Institute Financial Security Program, and the Independent Women’s Forum. The study surveyed 2,000 American adults spanning Gen Z, Millennials, Gen X, Boomers and the Silent Generation, and found that when comparing fees as a percentage of a $1,000 loan. The survey illustrates that Americans with little or no savings paid more than $39 billion dollars in fees–beyond the advertised Annual Percentage Rate (APR)–when seeking short-term capital, a 34% increase from 2023.

Findings show that cash-poor consumers are much larger than what was once assumed as it’s mostly middle-class Americans, including those with college degrees, those who own homes, are investors, and those who have six-figure incomes. One in seven cash-poor Americans makes over $75,000 a year. As well as unplanned expenses costing the average American family living paycheck to paycheck $1,825 a year – a decrease from $1,900 in 2023.

Economic factors are playing a large part in overall mental deterioration as there is very little relief from financial strain. Some of the findings on how money is affecting Americans mental health include:

Money is impacting millions of American’s mental health. 36% of cash-poor Americans suffer from poor mental health, such as depression or anxiety as they struggle with money-related stress.
Money woes by generation. 77% report the past 12 months have been financially stressful versus relaxed (23%).
- Boomers were most likely to report the past 12 months to be stressful (85%) compared to Gen Z and Millennials (both 73%) as well as Gen X (79%).
The impact of unplanned expenses lingers The top five words used to describe how cash poor Americans are dealing said:
- Feel worried (41%)
- Frustrated (37%)
- Depressed (34%)
- Anxious (34%)
- Discouraged (23%)

SoLo Funds tips to apply for reducing stress, anxiety, and money woes

Exercise no matter what and take time out for yourself. It’s been proven that even a little regular exercise can help ease stress and boost your mood and energy. Breathe and try not to create an added burden to yourself. This is also a great way to spend your time and distract yourself from spending money you don’t have.
Spend time with loved ones and those who care about you as money problems can affect your social life and relationships. You might feel lonely or isolated, or that you can’t afford to do the things you want to do. These individuals who you trust can help you spot warning signs on your overspending as you struggle with your mental health
Managing what you can control. For example, don’t save your credit card details into websites. Be sure to delete apps where you usually overspend or apps that encourage you to spend. Finds ways to delay purchasing
Plan accordingly. You can start by knowing your income and understanding exactly how much money you expect to get and when you expect to get it. This can help you project and budget. You should also know your regular experiences. If you don’t know where to begin, look at the previous month and think of all the expenses that you have to always pay that are a fixed cost. You can then use this information to create a spending plan.

To download the full report and learn more about the 2025 Cash Poor Report, please visit www.theCashPoor.com