Six in 10 American Parents are Going into Debt for Their Children

National Debt Relief survey shows parents at a financial breaking point as debt and costs surge

NEW YORK, Aug. 14, 2025 /PRNewswire/ -- National Debt Relief, the industry leader in debt settlement known for its unique approach to debt relief, today released findings from a new survey conducted in partnership with Talker Research, examining the financial pressures faced by 2,000 U.S. parents of children ages 0–18. The results show rising living costs are forcing parents into debt in an attempt to cover essentials for their children, like medical care and school supplies. Many parents are also making tough tradeoffs, neglecting their own well-being and putting off long-term goals like saving for their child's college, growing their family, or achieving financial stability.

Debt is a Reality of Modern Parenthood
Debt has become an unavoidable part of modern parenting, defining families' financial decisions and plans for the future. Most parents today report they are carrying debt just to meet their children's basic needs.

• Six in 10 (59%) parents have gone into debt to provide for their children.
• Nearly half (48%) of parents in debt say it's becoming "unmanageable."
• 63% of indebted parents feel their financial situation limits their ability to provide for their children (vs. 48% of those without debt).
• 81% of parents in debt prioritize meeting their children's needs over paying off their debt.
• The most common kinds of unsecured debt American parents have include credit card debt (42%, averaging $14,556), medical bills (27%, averaging $12,316), and personal loans (25%, averaging $15,294).
• 57% of parents in debt say it made them feel limited in their ability to grow their family.

"Debt disrupts more than just finances. It reshapes parenting," said Natalia Brown, Chief Consumer Affairs and Creditor Relations Officer, National Debt Relief. "Debt is quietly dictating the choices parents make for their families every day, from skipping meals to shelving college savings plans for their children. As both a financial advocate and a mom, I know how heavy the burden of making those choices can feel. Our goal at National Debt Relief is to give parents the tools and support they need to courageously break free from debt and build a future that prioritizes both their children's needs and their financial success."

Debt is Disrupting the Physical and Mental Health of America's Parents
In addition to financial strain, debt is eroding parents' mental and physical well-being. Debt's toll on them is profound, fueling stress, self-doubt, and even hunger.

• Parents in debt are twice as likely to neglect their physical and mental health as those not in debt, and 50% more likely to skip meals.
• 48% of parents say they worry more about their debt than whether they're a good parent.
• 44% are more stressed about debt than their child's health or relationship with them.
• On average, parents surveyed are stressed by their overall finances and their debt or potential for debt five times a week.

Health Care Costs are Pushing Parents Further into Debt
Medical expenses are not optional; they're essential to a child's well-being. Yet, the mounting costs of health care are forcing parents to jeopardize their own financial futures to afford it for their children.

• 42% of parents in debt say they've taken on debt in the past year to cover out-of-pocket prescription costs for their children.
• 41% of parents went into debt for doctor visits, and 39% for dental care.
• 32% of parents in debt fear they won't be able to afford their child's future medical emergencies.
• Mental health care costs for children are also rising sharply, as the second-most expensive form of care ($1,377) contributing to the average parent's medical debts in the past year, just behind emergency care ($1,560).

When Parenting is Most Expensive
There's no offseason for affording children, but certain times of year hit parents especially hard. Parents selected the holidays and back-to-school season as the moments they are most likely to incur debt for their children, and many increased their reliance on buy now, pay later (BNPL) services to keep up during those times as well.

• 47% of parents went into debt to provide for their children during the holidays, and 39% during the back-to-school season.
• Parents with outstanding buy now, pay later debt took on debt during these times more than any group surveyed—52% for back-to-school expenses, and 62% during the holidays.
• Parents with outstanding BNPL debt also led all groups in the use of buy now, pay later services, with 65% relying on them for back-to-school purchases and 75% for holiday spending.

Priced Out of the Future
The dream of higher education is becoming increasingly distant for many children, as parents burdened by their own student loans and other debts are struggling to save for their kid's futures.

• 50% of parents in debt fear they won't be able to afford their child's college education, which is the most common concern within this group.
• Among all debt types surveyed, parents with their own student loan debt (averaging $22,896) are the least able to save for their child's future schooling.
• More than one in four parents with student loan debt believe the burden of higher education's cost outweighs its value.

"Parents are doing everything they can to give their kids a better life, and for many, that means taking on debt that nowadays too easily snowballs over time," said Dasha Kennedy, financial activist, founder of The Broke Black Girl and member of National Debt Relief's Financial Wellness Board. "This pressure doesn't just affect parents today; it follows families into the future, shaping their children's experience with money and financial security. The good news is trusted guidance and resources are available to help parents get out of debt, and with support and a plan, families can boldly break that pattern and move toward lasting stability."

Debt settlement is an option for anyone with more than $7,500 in unsecured debt, such as credit cards, medical bills, or personal loans. The National Debt Relief debt settlement program allows clients to get out of debt more quickly than making minimum payments, avoid bankruptcy, and pay less than what they originally owe in manageable payments that fit their budget. Learn more at NationalDebtRelief.com or call 1-800-718-0487 for a no-obligation, free consultation with a certified debt specialist.

About National Debt Relief
Since 2009, National Debt Relief has helped people face their debt with confidence. As the debt settlement industry leader, we make the process of getting out of debt less overwhelming and more empowering. National Debt Relief is a Better Business Bureau A+ accredited business, Forbes Advisor's top-rated debt relief company for three consecutive years and is the most highly reviewed and rated debt settlement company on ConsumerAffairs. We have helped over 1 million people take meaningful steps toward resolving their debt so they can feel financially and emotionally whole again. Learn more at NationalDebtRelief.com.

SOURCE National Debt Relief