According to an Australian survey, more than 80 per cent of respondents said their high level of debt was a significant cause of stress.
The survey which involved 70 people with serious debt issues, who had turned to professional assistance, revealed financial woes were also a major cause of relationship breakdown and depression.
Craig Francis, director of the company Debt Rescue which commissioned the study said, Debt doesn't just affect the hip pocket.
The stress caused by debt has a knock-on effect that impacts on life at work, at home and with friends.
While 83 per cent of respondents said their debt had triggered stress, more survey respondents, - 86 per cent- said it was vital to address psychological as well as financial consequences of high debt.
Two out of three respondents (63 per cent) said their debt levels made them feel depressed, while the same proportions reported high levels of anxiety.
A total of 59 per cent of respondents said their indebtedness had caused relationship breakdowns.
A quarter said it has triggered conflict with a spouse or partner, and 15 per cent said the problem affected their broader family.
Ten per cent said debt had damaged relationships with friends, and seven per cent said it has affected their standing with work colleagues.
We've known for many years about the extent and prevalence of debt problems, said Mr Francis.
Now we are learning more about the emotional impact in terms of mental health, anxiety, depression and relationship breakdowns.
The report, Debt, Stress and You: The Emotional and Personal Impact of Australia's Love Affair with Debt will be launched officially on Tuesday.