56% of consumers say it would take more than six months to pay off their short-term unsecured debts, including credit cards, personal loans, and buy now, pay later balances.
55% are carrying credit card debt to cover essential expenses, and more consumers are holding those balances for longer periods.
Debt pressure is forcing some households to cut spending on basic needs, borrow more, and even delay medical care or reduce prescribed medication.
Consumers may be keeping up with their monthly bills, but a new survey suggests many are facing a much longer road to getting out of debt.
More than half of consumers — 56% — said it would take them longer than six months to repay all of their short-term unsecured debt, according to a new survey from the Achieve Center for Consumer Insights. That debt includes credit card balances, buy now, pay later loans, personal loans, and medical debt.
The findings come from a recent survey of 2,000 U.S. adults who have at least one active consumer debt account. The results point to continued pressure on household budgets as consumers contend with everyday expenses while trying to avoid falling behind on their financial obligations.
Credit cards are increasingly covering necessities
One of the clearest signs of that pressure is how consumers are using their credit cards.
Achieve found that 55% of consumers carry credit card balances because of the rising cost of essential expenses, up from 53% in the previous quarter. Meanwhile, 27% said they have carried credit card debt for essential purchases for more than six months, compared with 25% in the second quarter.
The survey also found that 52% of respondents are comfortable putting essential expenses on a credit card without paying the balance off immediately.
Nearly three in 10 consumers — 29% — said they have more debt than they can comfortably manage. Another 53% described their debt as manageable, while 18% reported having no debt.
There are also signs that progress on reducing debt may be slowing. About 33% of consumers said their total debt had declined during the previous three months, down from 38% in the prior survey. Twenty-two percent said their debt increased, while 45% reported no change.
Overall, 54% of respondents described their current financial situation as either “poor” or “fair,” while 35% called it “good,” and 11% said it was “excellent.”
Paying the bills — but making sacrifices
Most households haven't stopped paying their bills. In fact, 88% of consumers said they were able to pay all or nearly all of their monthly obligations during the previous three months.
But staying current doesn't necessarily mean those payments are easy to make.
About 34% said making debt payments on time had been difficult or very difficult. Among those struggling to pay monthly bills, 66% blamed insufficient household income, 31% said they owed money across too many accounts, and 22% pointed to a mismatch between their paydays and debt due dates.
For some households, managing those payments means making significant tradeoffs elsewhere.
Among respondents who used financial stopgaps after falling short on what they owed, half said they reduced spending on basic necessities. Nearly one-third, 32%, took on additional credit card debt, 28% borrowed from friends or family, and 25% tapped short-term savings.
The financial strain is also affecting healthcare decisions. Among those respondents, 19% said they delayed or skipped medical treatment, while 11% said they skipped or reduced doses of prescribed medications. Eighteen percent missed at least one debt payment.
The findings illustrate an important distinction for consumers: Being able to make the next payment isn't necessarily the same as being financially secure. When debt used to cover everyday necessities sticks around for months, interest charges can increase the ultimate cost while leaving households with less money available for emergencies, savings, and other financial goals.