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Navigating Financial Strains: How Americans Are Coping With Debt Challenges

A recent survey conducted by Achieve, a leading digital personal finance company, sheds light on the tough choices that many Americans are making to navigate their financial hurdles. Amid rising costs of living and increasing debt loads, a staggering 51% of respondents reported resorting to risky financial measures during the last quarter of 2025 due to insufficient funds to meet their obligations.

The Struggles of American Households

The challenges faced by households are evident. As numerous individuals grapple with overwhelming debt, many report having exhausted the options for trimming their spending without compromising essential needs. Key findings from the survey indicate a significant reliance on precarious financial maneuvers, with 50% of respondents reducing spending on basic necessities. Additionally, 34% have increased their credit card usage, and 26% have had to dip into their emergency savings.

The situation is grave, as 20% of consumers reported missing at least one payment on existing debts, while another 20% had to delay or forgo medical treatments. Alarmingly, 9% indicated that they skipped or reduced the intake of prescribed medications. Andrew Housser, Achieve's Co-Founder and Co-CEO, noted, "This is what the K-shaped economy looks like in the real world. There's an affluent half of the population whose financial lives aren't disrupted. But for the rest, trade-offs are now routine."

Coping Strategies Under Pressure

The survey paints a stark picture of the coping strategies being employed. Consumers have reached a point where further reductions in spending seem almost impossible. The data reveals that a large proportion feels they cannot cut back on crucial expenses — 93% reported they couldn't reduce housing costs, while 92% felt the same about utility bills. even discretionary spending categories are running dry, with 75% unable to decrease their entertainment expenses at home.

The statistics regarding spending capacity are concerning:

• - 90% can't cut back on groceries
• - 87% are unable to trim transportation expenses
• - Over 55% indicated they cannot reduce spending on gifts and entertainment outside home.

Housser emphasized, "Many consumers' belt-tightening efforts have reached the last notch. Keeping up with debt becomes increasingly challenging in a climate where expenses or payments continue to escalate."

Emotional and Physical Health Risks

Housser underscored that these financial practices pose risks not just to consumers' financial health but potentially to their physical and mental health as well. Decisions like delaying medical care or missing debt payments threaten to create a vicious cycle that is difficult to recover from. As financial gaps widen and the situation persists, many are left with little to no resources to tackle unexpected expenses.

Insights from the Consumer Poll

The January 2026 survey involved 2,000 American adults and aimed to provide a qualitative perspective on consumer borrowing and the ongoing debt situation.
Some key insights from the survey included:

• - 55% of consumers report carrying credit card balances solely to cover essential expenses; 26% have maintained that balance for over six months.
• - A notable 24% observed an increase in their overall debt in the last three months, while a smaller 32% witnessed a decrease.
• - There are signs of slight improvement regarding consumers' ability to pay off short-term debts. About 38% expect to take more than a year to settle outstanding debts, down from 41% in the previous quarter.

Conclusion

These findings present a sobering view of the financial landscape confronting many households across America. Manufacturers like Achieve are stepping up, providing essential insights and support aimed at helping consumers regain control over their financial futures. As these issues continue to evolve with the changing economic climate, further understanding and community support will be pivotal in tackling these crises head-on.