Survey Reveals One in Three Americans Struggling with Debt Management and Late Payments
As households across the United States navigate a precarious financial landscape, a recent survey conducted by Achieve sheds light on the troubling state of consumer debt. The findings reveal that one in three Americans—33%—are struggling to manage their debt effectively, with an alarming 35% admitting they can’t pay all their bills on time. This data emerges in conjunction with Financial Literacy Month, a time to reflect on personal financial health and awareness.
Achieve, a digital personal finance company, initiated the survey through its think tank, the Achieve Center for Consumer Insights. The insights focused on the struggles families face in managing increasing debt levels. Strikingly, among those who self-reported an excellent credit score (760 or above), 36% are completely debt-free, while 61% felt their debt was manageable. In stark contrast, only 3% of individuals with poor credit scores (below 620) reported being debt-free, with a mere 19% stating their debt was manageable.
These numbers emphasize a disturbing trend: as financial pressures intensify, educated financial practices become more critical. Achieve co-founder and co-CEO Brad Stroh commented on the survey's implications, emphasizing that when individuals feel overwhelmed and are on the verge of missing payments, they often lack clarity regarding their next steps. He reassured consumers that they are not alone in this struggle and that effective assistance is available.
The survey also highlighted other pressing financial concerns—26% of respondents stated that their debt had increased in the last quarter of 2024, and 57% confessed to carrying credit card balances to cover essential expenses. The need for reliable education around budgeting and financial planning is paramount, especially as one’s credit rating significantly impacts many financial aspects, including the ability to borrow and secure favorable terms.
Moreover, while 65% of all survey participants reported paying their bills on time, this percentage soared to 98% for those with excellent credit and plummeted to only 31% among individuals with poor credit ratings. Stroh asserts that financial literacy goes beyond merely understanding budgeting—it encompasses knowing how to stabilize finances during stressful times.
For individuals grappling with the stress of potential missed payments, the Achieve Center for Consumer Insights advises taking several proactive steps to regain control:
1. Prioritize essential bills: Focus on critical payments like housing, utilities, and transportation first. Unsecured debt can be addressed later.
2. Communicate with creditors: Many lenders offer assistance such as hardship programs or payment deferments if contacted before a payment is missed.
3. Steer clear of quick fixes: Borrowing against credit cards may provide temporary relief, but it can perpetuate deeper financial troubles in the long run.
4. Investigate alternate funding options: If struggling to stay current, consider temporary loans from family or friends, a home equity credit line, or tapping into a 401(k). Be sure to weigh the pros and cons.
5. Explore debt relief options: Should your debt become beyond manageable, reputable programs may offer solutions through debt settlement or credit counseling.
6. Start budgeting: Even if you are on the edge of missing payments or have already done so, constructing a well-thought-out budget can help regain control over your finances. A basic plan that outlines income against essential expenses can alleviate stress and promote more informed decision-making.
The data discussed stems from a survey conducted by Achieve in January 2025, involving 2,000 U.S. consumers aged 18 and older with consumer debt. This includes those with auto loans, major credit cards, mortgages, and student loans. The objective was to paint a clear picture of how many American households are currently facing financial struggles.
Achieve aims to equip individuals with the tools necessary to navigate financial challenges and build a better future, fulfilling its commitment to empower everyday people toward achieving financial stability.
Achieve, a digital personal finance company, initiated the survey through its think tank, the Achieve Center for Consumer Insights. The insights focused on the struggles families face in managing increasing debt levels. Strikingly, among those who self-reported an excellent credit score (760 or above), 36% are completely debt-free, while 61% felt their debt was manageable. In stark contrast, only 3% of individuals with poor credit scores (below 620) reported being debt-free, with a mere 19% stating their debt was manageable.
These numbers emphasize a disturbing trend: as financial pressures intensify, educated financial practices become more critical. Achieve co-founder and co-CEO Brad Stroh commented on the survey's implications, emphasizing that when individuals feel overwhelmed and are on the verge of missing payments, they often lack clarity regarding their next steps. He reassured consumers that they are not alone in this struggle and that effective assistance is available.
The survey also highlighted other pressing financial concerns—26% of respondents stated that their debt had increased in the last quarter of 2024, and 57% confessed to carrying credit card balances to cover essential expenses. The need for reliable education around budgeting and financial planning is paramount, especially as one’s credit rating significantly impacts many financial aspects, including the ability to borrow and secure favorable terms.
Moreover, while 65% of all survey participants reported paying their bills on time, this percentage soared to 98% for those with excellent credit and plummeted to only 31% among individuals with poor credit ratings. Stroh asserts that financial literacy goes beyond merely understanding budgeting—it encompasses knowing how to stabilize finances during stressful times.
For individuals grappling with the stress of potential missed payments, the Achieve Center for Consumer Insights advises taking several proactive steps to regain control:
1. Prioritize essential bills: Focus on critical payments like housing, utilities, and transportation first. Unsecured debt can be addressed later.
2. Communicate with creditors: Many lenders offer assistance such as hardship programs or payment deferments if contacted before a payment is missed.
3. Steer clear of quick fixes: Borrowing against credit cards may provide temporary relief, but it can perpetuate deeper financial troubles in the long run.
4. Investigate alternate funding options: If struggling to stay current, consider temporary loans from family or friends, a home equity credit line, or tapping into a 401(k). Be sure to weigh the pros and cons.
5. Explore debt relief options: Should your debt become beyond manageable, reputable programs may offer solutions through debt settlement or credit counseling.
6. Start budgeting: Even if you are on the edge of missing payments or have already done so, constructing a well-thought-out budget can help regain control over your finances. A basic plan that outlines income against essential expenses can alleviate stress and promote more informed decision-making.
The data discussed stems from a survey conducted by Achieve in January 2025, involving 2,000 U.S. consumers aged 18 and older with consumer debt. This includes those with auto loans, major credit cards, mortgages, and student loans. The objective was to paint a clear picture of how many American households are currently facing financial struggles.
Achieve aims to equip individuals with the tools necessary to navigate financial challenges and build a better future, fulfilling its commitment to empower everyday people toward achieving financial stability.
Topics Financial Services & Investing）
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