Nearly half of Americans with significant debt are either making only minimum payments or have already fallen behind on their bills, according to a new survey.
The Freedom Debt Relief and Money.com study surveyed 1,800 adults with at least $10,000 in unsecured debt.
The survey found that 41% have stopped dining out or ordering delivery, while 40% have cut back on nonessential online shopping.
“There’s a tendency to assume that people get into, and stay in, debt because they aren’t willing to change their habits,” said Freedom Debt Relief President Sean Fox. “What this research shows is a much more complicated picture."
Researchers found that many respondents are highly motivated to improve their finances but continue to struggle to get ahead, even after reducing nonessential spending.
Some are also tapping into their future savings to manage debt today. Nearly one-third said they withdrew money from retirement accounts within the past year.
The study found that many people are looking for breathing room and a path to reduce financial stress.
Many aren't even looking for the cheapest solution. Instead, 60% said their top priority is finding an option that reduces stress. Other key priorities included reducing monthly payments (57%), improving cash flow (56%), and improving credit history and credit scores (53%).
