Pet debt is rising. Can regular Americans still afford one?
Would you go into debt to care for your beloved pet?
How far would you go for your pet’s health and happiness?
- Recent reports indicate the lifetime cost of owning a cat or dog can exceed $30,000, leading to financial strain for many owners.
- Many owners are skipping necessary veterinary care due to cost, with most unable to afford more than $1,000 for life-saving treatment.
Several recent reports point to a sobering conclusion: Maybe pets are only for the rich.
One in 5 pet owners carry at least $2,000 in pet debt, according to a June survey of 1,000 American pet owners commissioned by MetLife Pet Insurance. One in 7 experience “pet poverty,” struggling to meet their own basic needs while also caring for a pet.
The lifetime cost of pet care has reached roughly $32,000 for a cat and nearly $35,000 for a dog, according to a recent report from Rover, a pet care marketplace.
Nearly one-quarter of pet owners fear being priced out of pet ownership, according to a 2024 survey by LendingTree, the personal finance site. Two-fifths of owners say their present pet will be their last.
“If you go into having a pet and don’t give serious thought about the cost, you’re doing yourself and your pet a disservice,” said Matt Schulz, chief consumer finance analyst at LendingTree.
Pricey or not, pets are family
Never, perhaps, have pets enjoyed a more exalted status in American homes. Ninety-four million households include at least one pet, up from 82 million in 2023, according to an industry report by the American Pet Products Association.
Two in 3 Americans consider pets a component of the American Dream, according to a recent report from Investopedia.
More than ever, Americans regard pets as family. In a recent survey by Trust & Will, 62% of respondents stated that pets and humans should receive the same treatment in estate plans.
But pets are getting pricey. Owning a large dog now costs an average of $5,295 a year, Rover reports. An emergency room visit for a cat can cost up to $1,850.
More than half of pet owners have skipped necessary veterinary care or declined recommended treatment, primarily due to cost, according to a recent study by PetSmart Charities and Gallup.
Most pet parents said they would not be able to afford more than $1,000 to cover life-saving treatment.
“There are tough decisions that you don’t want to think about: How much am I willing to pay to take care of my pet?” Schulz said.
Pet care costs are rising fast
Veterinary costs have risen by more than 60% since 2014, the report said.
Prices are rising everywhere, of course. But they’re rising faster in some sectors of the pet industry, industry experts say.
COVID-19 sparked a “pandemic pet” boom, with millions of Americans adopting cats and dogs for companionship amid quarantines and remote work.
All of those new pet owners needed veterinarians. But the nation faces an ongoing vet shortage, driven partly by job pressures, long hours and low pay.
“There are fewer vets. A lot of them have left the industry,” said Dr. Rebecca Greenstein, veterinary medical adviser for Rover. “There are a lot fewer veterinary techs and nurses. So, we have basic forces of supply and demand at play,” pushing prices up.
Veterinary care has grown more sophisticated, with a rise in veterinary specialties in anesthesia, emergency care, dermatology and internal medicine, among other areas. Veterinary MRIs and CT scans are more common, along with the attendant costs.
Is pet insurance worth the cost?
One way to cover those costs is to go into debt. Another is to purchase pet insurance. More than 6.4 million U.S. dogs and cats were covered by pet insurance in 2024, according to NerdWallet, more than double the number insured in 2020.
It’s not cheap: Annual premiums averaged about $749 for dogs and $386 for cats for accident and illness coverage in 2024, NerdWallet reports. Rates rise dramatically for older pets.
Like human insurance, pet insurance generally comes with deductibles, coverage limits and exclusions.
The scary costs of veterinary care provide a strong argument for pet insurance, some experts say, especially if you buy the policy when the pet is relatively young and healthy.
“I consider pet insurance a crucial part of pet ownership these days, and I wouldn’t have said that five or 10 years ago,” Greenstein said.
If you do consider pet insurance, she said, be sure to read the fine print. Policies vary widely in what they do and don’t cover.
When Consumer Reports recently rated 14 pet insurance providers, none reaped a particularly high overall satisfaction score from policyholders. Their analysis suggests the typical policyholder more or less breaks even in the end.
Are some Americans too strapped to afford a pet?
Given the rising costs of pet ownership, are some Americans too financially strapped to own a pet?
“It’s a really challenging question to answer,” Greenstein said. “I see a lot of people who are putting themselves in very financially precarious positions to have animals in their lives.”
On the other hand, she said, “I’m personally a believer that what pets bring to your life is hard to put a value on.”
Schulz, of LendingTree, thinks every would-be pet owner should balance the dangers of pet debt against those invaluable rewards.
“It’s a little bit like having a kid,” he said. “You know that it’s going to be expensive going in, but chances are you don’t really have any idea until you’re actually in.”
How to save money on veterinary care
Here are some money-saving pet tips from Dr. Carolyn Brown, vice president of medicine, community medicine, at ASPCA:
- Don’t skip your pet’s annual exam. It’s more costly to treat illnesses than to prevent them.
- Know the difference between optional and mandatory vaccines. Never skip the mandatory ones.
- Spay or neuter your pet. The procedure saves money by preventing serious health problems.
- Start a dental routine to keep your pet’s teeth and gums healthy. Dental disease can lead to heart and kidney problems.
- Protect against flea and tick infestations, which can spawn costly medical problems.
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