One-Third of Americans Can’t Afford Their Debt Bills. Here’s How to Regain Control
More than one in three Americans say they can’t afford to make the full monthly payments on all their debts.
That’s one of the key findings from a new survey of 2,000 people by personal finance company Achieve and Money.com — and it highlights the growing financial strain many households are under as the cost of everyday essentials continues to rise. The more debt borrowers have, the tougher it is to stay on top of payments: 57% of respondents who say they have a bit more debt than is manageable can’t afford their payments, and 80% who have far more debt than is manageable say the same.
From groceries and gas to housing and health care, higher prices are pushing many Americans to rely more heavily on credit. Household debt climbed by $191 billion in the fourth quarter of 2025, reaching $18.8 trillion, according to the Federal Reserve Bank of New York.
High-interest debt, like what you can rack up with credit cards, can be especially detrimental to your finances if you have to skip monthly payments. Nearly three-quarters of respondents with unmanageable debt say credit cards and other short-term debts are standing in the way of their long-term financial goals.
But even if your debt feels overwhelming, there are ways to start turning things around. Here are four moves to consider.
1. Stop the bleeding
The first step to gain control of your debt is to stop your balances from growing. For people with credit card debt, this means transitioning away from using high-interest credit where possible until you’ve paid off your remaining balance. Look for ways to spend less on essentials, such as buying groceries in bulk when possible and signing up for free loyalty programs from gas companies that offer discounts at the pump. You’ll likely also need to trim (or completely cut) spending on non-essentials, such as streaming subscriptions and dining out, while you get your debt in check.
You may have to be pretty draconian with your cuts. But keep in mind that the worst of it is temporary, says Sammie Guajardo, senior financial planner at Facet, a financial planning firm. “It’s a little bit more manageable than saying it's going to be a forever thing.”
That resiliency shows up in the survey results — even among those whose debt feels overwhelming. More than 7 in 10 respondents indicated that they remain hopeful their financial situation will improve over the next few years.
Creating a budget you can stick to can also help. Review your income and current spending, and allocate a certain amount of money to each spending category. You can do this the old-fashioned way with a pen and paper, use a spreadsheet or turn to a budgeting app.
2. Consider debt management tools
You can also tap debt management tools such as consolidation to help get your debt under control. This strategy refers to replacing multiple debts with a single new loan — one that ideally comes with a lower interest rate and lower monthly debt payments. One way to consolidate is with a balance transfer credit card with a 0% annual percentage rate (APR).
However, Guajardo points out that these credit cards typically only offer the lower APR for a set amount of time, such as one year. So while it can help in the near term, it’s not necessarily a long-term strategy. Instead, Guajardo says she’s worked with borrowers who have consolidated their debt via a personal loan with a lower rate — for example, replacing a 22% rate with one around 15% — and minimum payments can fit into their budget over the long-term. In fact, consolidating multiple debts with a single personal loan is a top-rated strategy in the Achieve/Money.com survey, with about half of respondents expressing comfort with this move.
Another consolidation option is a home equity loan or home equity line of credit (HELOC), which roughly a quarter of survey respondents said they’d be open to. In that scenario, you’d borrow against your home to pay off your expensive debt and give your wallet some breathing room.
3. Ask for assistance from your lender
When it comes to digging out of debt, it never hurts to ask for help. Call your lender and explain your situation, since they may have options even if they aren’t publicized online. Nearly 40% of respondents said they’d be comfortable contacting a creditor to ask for a hardship-based interest rate reduction or debt forgiveness.
Guajardo says she’s seen borrowers get grace periods of lower interest rates by talking directly to their lenders. If you’re proactive, “there should be options,” she adds.
4. Bring in expert help
Sometimes you need some expert help to get started or keep you motivated. If that’s you, many consumers choose between a credit counseling organization or a debt settlement company. If you consider tapping credit counselors from non-profit organizations, keep in mind their services typically focus on providing educational resources and helping you manage your interest rates through a debt management plan. In these plans, you make a regular payment to the credit counseling organization, such as once a month, and then they pay your creditors to help stay on top of your existing balances.
For those looking to reduce the total amount they owe, there are also debt settlement companies, which can negotiate with your creditors on your behalf. Keep in mind that working with either a credit counseling organization or a debt settlement company can come with a fee, but for many, the trade-off is worth the emotional and financial relief. Roughly 4 in 10 respondents said they were comfortable pursuing one of those strategies.
Smarter debt starts here
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