Debt as Quiet Oppression; Finding your way out!

Over 70% of Americans report feeling financial stress (CNBC poll April 2025) and the worry is widespread through age groups. Many Americans (about one-third) have no emergency funds, and are having difficulty making ends meet due to higher costs.  Lower income folks and younger populations are affected more adversely by trends.  As a result of economic factors, personal debt is growing!

Debt can feel like the walls closing in, making you feel trapped with few options! Our debt may be a result of many small purchases, an emergency expense, gambling, or holiday expenses which then turn into a burden that dictates daily living. Suddenly you find yourself like a circus juggler dropping balls – juggling minimum payments, juggling late fees, juggling due dates! You begin worrying day and night about how to stay afloat, while your debt steals freedom, time, and peace of mind.

Debt is acceptable and necessary in some circumstances.  Mortgages, student loans, even credit card debt that we are able to pay off monthly, can be good uses for debt.  There are tax advantages to mortgages, and some credit card rewards for charges.  In the US, debt is widespread and considered normal — with $18.5 trillion in total consumer debt, the average household owes over $100,000. That means it’s not just a few isolated cases; debt is baked into modern American life.

For many though, debt isn’t just a financial obligation — it becomes a cycle of stress and danger. all to survive one more month. You may find yourself borrowing more to stay current, deferring payments, rolling over high-cost loans, even borrowing from friends and family. Before you know it, a person is living for debt, not living for life.

Common Debt Instruments & How Expensive They Are

Here are some of the ways people borrow — and just how steep the cost often is.

• Payday loans — small, short-term cash advances, often due by the borrower’s next paycheck. They’re notorious for sky-high costs: a fee of roughly $15 per $100 borrowed for a two-week loan translates into a roughly 391% APR. (consumer.ftc.gov)
• Credit card debt — revolving credit that, if not paid off monthly, carries interest; as of 2023–2025 many cards charge in the 20–25% APR range. (Nationaldebtrelief.com and Bankrate.com)
• Auto loans (car loans) — for many new-car buyers, auto-loan APRs depend heavily on credit score. For high-credit borrowers, rates may be around 5–7%, but for lower-credit borrowers, rates can climb into double digits. (Bankrate.com)
• Car title loans — short-term secured loans using a vehicle’s title as collateral. These are extremely expensive: many charge monthly fees of 20–25%, which annualizes to 300% APR or more. (Bankrate.com)
• Casino loans or “markers”— while not a formal, regulated instrument like the ones above, and interest is not charged, this line of credit illustrates how desperation or urgency can cause people to get money fronted, which is later collected from their bank accounts.

When we have many layers of debt— say, a credit card balance, a car loan, plus a payday loan for unexpected expenses — it becomes oppressive. The interest and fees compound. Carrying multiple debts simultaneously can quickly consume income, trap individuals in cycles of borrowing, and erode not only financial security but mental and emotional well-being.

Why Debt Feels Like Oppression

1. Lack of control — when you’re chasing high interest, juggling multiple payments, even one missed payment can trigger late fees or default consequences.
2. Power imbalance with lenders — especially with high-cost instruments (payday, title loans), borrowers often have no leverage: few protections, aggressive collection practices, sometimes even seizure of assets.
3. Debt stacking — one loan leads to another, then another, often just to pay off the prior one. What looked like a temporary relief becomes a long-term stranglehold.
4. Unpredictability and insecurity — a sudden expense (medical bill, car repair) can force someone into predatory debt. We feel helpless, and at the mercy of the loan company.
5. Psychological toll — The psychological toll is even more huge than media reports! Debtors experience chronic stress, shame, anxiety; the constant dread of not making the next payment, of losing essentials like a car or home which makes life about survival instead of living. And, we know that sometimes when people lose hope of repayment, they begin to look at suicide as a way out of the quandary.

Tips for Managing — and Escaping — Debt

If debt feels oppressive, here are some strategies to break free or at least reduce the chokehold:

• Budget rigorously: Track income and expenses closely, identify non-essential spending, and redirect what you can to debt payoff. Even small extra payments can make a difference over time.
• Negotiate terms: Call your bank, loan company, credit card company and see if you can lower the interest rate.  Make sure there is no penalty for paying off early. You may also freeze credit cards, to reduce temptation to charge more.
• Prioritize high-cost debt first: Focus on paying off payday loans, title loans, or high-APR credit-card balances — the kinds that accumulate interest fast — before lower-rate debts.
• Seek safer alternatives: Instead of payday or title loans, consider lower-interest personal or home-equity loans (when appropriate), or payment plans. Credit unions and traditional lenders often offer better terms.
• Create an emergency fund: If possible, build a small cash reserve (even $500–$1,000) to cover unexpected expenses, reducing the need to borrow under desperate terms.
• Consolidate strategically: If you have multiple debts, consider a debt-consolidation loan (with a lower APR) to simplify payments — but only if you can qualify for favorable rates. Please look at the details for this option to see if it makes sense.
• Avoid rolling over short-term loans: Rollover often renews fees and interest, trapping you longer. It’s usually more expensive than it appears.
• Lean on community resources or counseling: Non-profit credit-counseling agencies, community organizations, and even trusted friends/family can offer advice or support. Sometimes a conversation or referral can open safer options.
• Do not go into deprivation mode: We still need enjoyable aspects to our life, but finding enjoyment in cheaper ways will reduce the risk of an all-out spending or gambling spree fueled by impatience or hopelessness from a period of feeling deprived!

Debt doesn’t have to be permanent. With knowledge — of how expensive certain debt instruments are, what the real interest rates mean — and with a plan, you can regain control. The road may be slow. But every dollar paid off, every high-APR loan avoided, every extra payment made are steps toward freedom.

Most of all, it’s important to not lose hope—and important to have hope in the right places.  Hoping for gambling wins, or hoping for an inheritance, or hoping for a sudden windfall may not be useful, while hoping for a raise or finding discounted items may be entirely possible.

If you are feeling suicidal or that life is not worth living, please reach out to a trusted friend or family member, or mental health professional.  Your life is worth saving, and you are so much more than your debt!

Peopleworks’ counselors are here to help. Peopleworks is your trusted companion in mental wellness. We specialize in the emotional and behavioral aspects of managing finances. Call or email us if you want to explore formal counseling services or look for our next set of online Money Management classes starting in late January.

Peopleworks-NM was founded in 2009 by Cindy Anderson, MSW, LCSW, IGCC-I, to provide mental wellness services to older adults, without consideration to economic status. Peopleworks currently provides services to individuals 16 years old and up. PeopleWorks NM Is here to support your mental health therapy needs.