Consumer Debt, Race, And Health: Can Debt Relief Be A Solution For Reducing Racial Health Disparities? Fenaba R. Addo December 11, 2025

https://www.healthaffairs.org/content/briefs/consumer-debt-race-and-health-can-debt-relief-solution-reducing-racial-health KEY POINTS: Black Americans have been systematically excluded from wealth accumulation through policies and practices that increase debt burdens and limit asset building, leading to chronic financial vulnerability and worse health outcomes. Debt negatively influences health through resource constraints, financial stress, and social stigma. These mechanisms limit access to health care, increase risky health behaviors, and cause psychological distress, and they disproportionately affect Black Americans. Evidence on the health benefits of debt relief, such as debt discharge from bankruptcy, suggest improved health outcomes but is limited when it comes to determining the benefits for Black communities. Improvements in data infrastructure and algorithmic matching may offer new pathways to study debt, race, and health more effectively. Although more research is needed, policy actions focused on expanding health insurance, supporting student debt relief, reforming bankruptcy systems, and asset building could address racial disparities in debt and health.