More than one in three Americans say they can’t pay all their bills each month.
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 families face as the cost of everyday essentials continues to rise. The more debt borrowers have, the more difficult it is to keep up with payments: 57% of respondents who say they have more debt than they can afford can’t make their payments, and 80% who have more debt than they can manage say the same.
From groceries and gas to housing and health care, high prices are forcing many Americans to rely heavily on debt. Household debt increased 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, such as that you can get through credit cards, can seriously hurt your finances if you have to skip monthly payments. About three-quarters of respondents with unmanageable debt say credit cards and other short-term debt 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 steps to consider.
1. Stop the bleeding
The first step to managing your credit is to stop your balances from growing. For people with credit card debt, this means avoiding using high-interest credit whenever possible until you pay off your outstanding balance. Look for ways to spend less on essentials, such as buying groceries in bulk if possible and signing up for free loyalty programs from gas companies that offer discounts at the pump. You’ll likely need to cut back (or completely cut out) spending on non-essentials, like streaming subscriptions and food, while you check your credit.
You may need to have a good draconian for your cuts. But remember that your worst is temporary, says Sammie Guajardo, senior financial planner at Facet, a financial planning firm. “It’s a little more manageable than saying it’s going to be a permanent thing.”
That resilience is reflected in the survey results – even among those with debt that they feel is beyond their control. More than 7 out of 10 respondents indicated that they still hope that their financial situation will improve in the next few years.
Creating a budget that you can stick to can also help. Review your income and current expenses, and allocate a certain amount of money to each category of spending. You can do this the old-fashioned way with pen and paper, use a spreadsheet or open a budgeting app.
2. Consider debt management tools
You can also tap debt management tools like consolidation to help manage your debt. This strategy means replacing most debt with a new loan – one that comes with a lower interest rate and lower monthly loan payments. Another way to consolidate a credit card balance is with a 0% annual percentage rate (APR).
However, Guajardo points out that these credit cards usually only offer a low APR for a set period of time, such as one year. So while it may help in the near term, it is not really a long term strategy. Instead, Guajardo says that he has worked with borrowers who have consolidated their debt with a personal loan with a lower rate – for example, replacing the average rate of 22% with one of about 15% – and the lower payments can fit into their budget in the long term. In fact, consolidating multiple debts into a single personal loan is the top-rated strategy in the Achieve/Money.com survey, with nearly half of respondents expressing comfort with the move.
Another option is a home equity loan consolidation or home equity line of credit (HELOC), which nearly a quarter of survey respondents said they would be open to. In that case, you would borrow against your home to pay off your expensive debt and give your wallet some breathing room.
3. Ask your lender for help
When it comes to digging out of debt, it never hurts to ask for help. Call your lender and explain your situation, as they may have options even if they are not posted online. About 40% of respondents said they would be comfortable contacting a lender to request a hardship-based interest rate reduction or debt forgiveness.
Guajardo says he has seen borrowers get grace periods for lower interest rates by talking directly with their lenders. If you’re busy, “there have to be options,” he adds.
4. Bring in professional help
Sometimes you need some professional help to get started or stay motivated. If that’s you, many consumers choose between a credit counseling agency or a debt settlement company. If you are considering tapping debt counselors from nonprofit organizations, remember that their services often focus on providing educational resources and helping you manage your interest rate through a debt management plan. In these plans, you make a regular payment to a credit counseling agency, such as once a month, and they pay creditors to help you stay on top of your existing balances.
For those who want to reduce the amount of money they owe, there are also debt settlement companies, which can negotiate with creditors on your behalf. Remember that working with a credit counseling agency or debt settlement company can come at a cost, but for many, trading is worth the emotional and financial relief. About 4 in 10 respondents said they were comfortable pursuing one of these strategies.
More from Mali:
Trying to Get Out of Debt? Here are 6 Tips to Pay It Off Fast
The Hidden Health Costs of Debt: Skipped Care, Headaches and Fatigue
The ‘Endless Spiral’: Why People With Too Much Debt Can’t Stop Spending
