Survey Finds Rising Consumer Debt Affecting Daily Decisions

Com found that nearly a third of Americans said their unsecured debt increased over the last year. The average consumer carries around $21,600 in non-mortgage debt, according to September 2025 Experian data.

Respondents with unmanageable debt reported cutting spending on basic needs, skipping bill payments, or adding more credit card debt. Around a quarter said they reduced retirement savings or investments. Matthew Barnard, an Illinois-based financial planner, said clients often avoid investing despite high incomes because of debt concerns.

He described debt as creating a state of financial paralysis for some borrowers.

LaQueshia Clemons, a Connecticut-based financial therapist, said unresolved trauma, poor habits, and daily stressors contribute to debt cycles. Survey respondents reported anxiety, depression, overwhelm, and sleep issues tied to financial stress. Barnard said he sometimes advises paying off low-interest debt instead of investing to improve mental well-being.

Clemons said addressing emotional blocks around money can help break avoidance patterns.

Three-quarters of respondents expressed optimism that their debt will improve. Nearly half said they are open to debt consolidation or working with a debt relief company. The National Foundation for Credit Counseling offers free referrals to debt counselors. Borrowers may also consider speaking with financial advisors or therapists for deeper issues.