Here’s why many parents face a debt crisis to support kids, new survey shows

The soaring cost of living and financial pressures on families have forced six in 10 parents into debt to provide for their children.

That’s according to a survey of 2,000 parents of children aged 0–18, which examined the economic challenges and mounting debt families across America are facing.

Sixty-three percent of parents in debt admitted their financial situation is preventing them from providing for their children the way they’d like, significantly more than the 48% of parents without debt who feel the same way.

For parents in debt (77% of those surveyed), half (48%) said their debt is becoming “unmanageable.”

According to the survey from National Debt Relief — conducted by Talker Research ahead of the back-to-school season — for many parents, this debt is increasing as they work to make ends meet for their families.

More than half of all parents surveyed are struggling to provide for their kids due to the rising costs of living (55%), and 57% of those in debt said it made them feel limited in their ability to grow their family.

Single parents are more likely to struggle to provide for their kids because of the rising costs of living (60% vs. 52%). Likewise, a greater percentage of single parents have debt that has become “unmanageable” (53% vs. 45%).

For some parents, this debt continues to accumulate because paying it off isn’t their highest priority — but this isn’t due to irresponsibility.

Rather, most parents in debt want to ensure expenses go towards meeting the needs of their children, with a significant majority (81%) of respondents prioritizing providing for their kids over paying off their debt (17%).

“Our findings show how deeply debt is reshaping modern parenthood — forcing families to choose between their own financial health and well-being versus their children’s needs,” said Natalia Brown, chief consumer affairs and creditor relations officer at National Debt Relief. “As a mother, I know how heavy the emotional and financial toll of providing for a family can be. Debt is becoming unmanageable for today’s parents, and while so many are lovingly putting their kids first, it’s often at their own expense. When the burden becomes too much to carry alone, parents need to know that seeking financial help and debt support isn’t shameful, it’s the courageous choice for themselves and their family.”

Financial concern is such a dominating part of their lives that parents admitted to feeling more stressed about the prospect of debt than whether they’re a good parent (48%), making sure their child hits milestones (47%), their child’s health (44%), and their relationship with their child (44%).

No wonder then that, on average, parents surveyed are stressed by their overall finances and their debt, or the potential for debt, five times a week.

The fear of debt and its repercussions is negatively impacting parents in significant ways, with those in debt being twice as likely to neglect both their physical health and mental health as parents not in debt, and 50% more likely to skip meals.

The most common kinds of unsecured debt American parents have are credit card debt (42%), medical bills (27%), and personal loans (25%). For respondents with these forms of debt, the average was $14,556 in credit card debt, $12,316 for medical debt, and $15,294 in personal loans.

The average parent with debt accrues $181 of new debt every month — parents of children ages 5–12 incur debt at $194 per month, the highest rate of all parents surveyed.

That number may well increase in the following months, when many parents will make major purchases for their children. Thirty-nine percent of parents revealed they’ve gone into debt to provide for their children during the back-to-school season, and 47% went into debt for the holidays.

Those figures rose significantly to 52% (back-to-school) and 62% (holidays) among parents with outstanding “buy now, pay later” (BNPL) debt — the highest rate of all debt types surveyed.

These parents also led in usage of the service, with 65% and 75% of them resorting to it for expenses during those times in the past year.

And breaking out of a debt cycle can be hard. Nearly two-thirds of parents feel that their control over the costs of providing for their children is limited (63%). Those who are in debt are especially likely to share this sentiment (67% vs. 54%).

The lack of control parents have over their finances isn’t just a short-term issue; they are very concerned about how they will provide for their child going forward.

Thinking ahead to their child’s future, parents in debt are most fearful of not being able to afford their child’s higher education (50%).

Among all debt types surveyed, parents who still carry student loan debt reported being the least able to save for their children’s tuition. Likewise, more than a quarter of them feel the cost of higher education outweighs its value.

That’s because many parents are still facing the burden of pursuing their own higher education, with the average respondent in debt owing $22,896 in student loans.

The inability to afford medical emergencies is the second-greatest fear of parents in debt, with 32% concerned they cannot cover the costs.

As with student loans, this is because parents in debt are already grappling with soaring medical costs, as 42% went into debt in the past year covering out-of-pocket expenses for their children’s medical prescriptions, 41% for doctors’ visits, and 39% for dental care.

The investment into mental health care for today’s children has also risen significantly, falling just behind emergency care as the second-most expensive form of care contributing to the average parent’s medical debts in the past year ($1,377).

“These widespread fears of inescapable financial struggle show how easily parents can slip into cycles of debt that not only weigh on them, but can also shape their children’s future,” said Dasha Kennedy, financial activist, founder of The Broke Black Girl, and member of National Debt Relief’s Financial Wellness Board. “But these cycles aren’t unbreakable — with the right support and financial guidance, parents can begin to regain stability and build a stronger foundation for their future and the next generation.”

State of Parental Debt

• Type of Debt Number of Parents Average Outstanding Debt
• Mortgage 550 $61,807
• Student loans 397 $22,896
• Auto loans 505 $19,581

• Personal loans 501 $15,294
• Credit card debt 846 $14,556
• Medical bills 537 $12,316
• Buy now, pay later 364 $7,427

Survey methodology:

Talker Research surveyed 2,000 U.S. parents of children aged 0–18, with an even split between parents of: 0-4 years of age, 5-12 years of age, 13-18 years of age. There was also a quota to include a minimum of 250 single mothers and 250 single fathers. The survey was commissioned by National Debt Relief and administered and conducted online by Talker Research between July 16 and 24, 2025.