A growing number of consumers struggle to manage their debt

A survey found money problems are linked to credit scores

By Mark Huffman of ConsumerAffairs

April 24, 2025

Key Takeaways:

• One in three consumers are struggling with debt, and over a third cannot pay all of their bills on time, according to a new survey from Achieve.

• Financial well-being is closely linked to credit score only 3% of consumers with Poor credit are debt-free, compared to 36% of those with Excellent credit.

• Achieve offers expert-backed strategies to help households prioritize bills, communicate with creditors, and explore debt relief options during Financial Literacy Month.

New data from the Achieve Center for Consumer Insights has uncovered a disturbing trend: a large segment of the population is struggling to stay afloat financially. According to a nationally representative survey of 2,000 U.S. consumers, 33% admit they are having trouble managing their debt, and 35% are unable to pay all of their bills on time.

The data reveal a strong correlation between credit score and debt manageability. Among those with excellent credit scores (760 and above), 61% consider their debt manageable, and 98% consistently pay their bills on time.

In sharp contrast, only 19% of consumers with poor credit scores (below 620) say their debt is manageable, and just 31% report paying their bills on time. These disparities underscore the vicious cycle many low-credit individuals face missing bill payments damages credit, which can in turn lead to higher interest rates and fewer financial options.

When people are overwhelmed and about to miss bill payments, they often don’t know what steps to take but the right strategy in that moment can make a major difference, Brad Stroh, Co-CEO of Achieve, said in a press release.

Inflation makes things worse

The survey found that 26% of respondents experienced an increase in overall debt during the last quarter of 2024, and 57% now rely on credit card balances to cover essential living expenses. While 65% of all respondents reported being able to pay their bills on time over the past year, this figure conceals large gaps by credit score bracket.

Only 31% of those with poor credit were able to stay current, compared to 83% with good credit and nearly all respondents with excellent credit.

To support financially stressed consumers, Achieve is offering practical recommendations:

• Prioritize essentials: Focus on housing, utilities, and transportation before tackling unsecured debts like credit cards.

• Communicate with creditors: Proactively reaching out may unlock hardship programs or temporary payment relief.

• Avoid high-cost quick fixes: Credit cards and cash advances can provide short-term relief but often lead to deeper debt.

• Consider alternative funding: Loans from friends, HELOCs, or even 401(k) borrowing can be options, but require careful consideration.

• Explore debt relief options: Services like debt settlement or credit counseling can help restructure unmanageable obligations.

• Start budgeting now: Even in crisis, a simple, clear budget can reduce stress and offer a path back to stability.

Financial literacy isn’t just about knowing what a budget is it’s about having a plan in moments of stress, Stroh said.

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