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56% of consumers say paying off short-term debt would take over 6 months

Monday, August 10, 2026 — 16:43:43 (UTC)

56% of consumers say paying off short-term debt would take over six months, Achieve survey finds

Aug 10, 2026, 12:02 ET

Short-term debt is carrying a longer repayment horizon as consumers struggle to make ends meet without borrowing more or cutting back on basics

SAN MATEO, Calif., Aug. 10, 2026 /PRNewswire/ -- Over half of consumers (56%) said it would take them more than six months to repay all of their short-term, unsecured debts like credit cards, buy now, pay later loans, personal loans and medical debt, according to a new survey by Achieve, the leader in digital personal finance.

The June 2026 survey of 2,000 consumers was conducted by the Achieve Center for Consumer Insights think tank, and complements the Federal Reserve Bank of New York's upcoming Quarterly Report on Household Debt and Credit by providing qualitative insights into consumer borrowing and debt.

"Short-term debts often start off as a temporary stop-gap solution to household budget gaps. With elevated costs of living and compounding interest charges, these debts can quickly create sustained pressure on household balance sheets and budgets," said Achieve Co-Founder and Co-CEO Brad Stroh. "When that happens, consumers are often unsure how to navigate their debt or where to turn for help. When consumers can't see a clear path forward, it often erodes their confidence and expectations for the economy overall."

Achieve's survey also found 55% of consumers carry credit card balances to cover the rising cost of essential expenses, up slightly from 53% in the second quarter 2026 edition of the survey. During the third quarter, 27% of consumers said they have been carrying credit card balances for essential expenses for more than six months, compared to 25% during the second quarter.

Other consumer insights from the survey:

52% of respondents said they are comfortable using a credit card for essential expenses and not paying the balance off right away, while 48% said they are uncomfortable with this practice.

29% of respondents said they have either "a bit more" or "far more" debt than is manageable, while 53% said they have a manageable amount of debt and 18% said they have no debt.

33% of respondents said their total debt decreased during the past three months (compared to 38% last quarter), while 22% said their debt increased (unchanged from 2Q26) and 45% reported no change (compared to 40% in 2Q26).

54% rated their current financial situation as "Poor" or "Fair." Another 35% rated it as "Good," and 11% gave an "Excellent" rating.

"Consumers commonly narrowly focus on whether they can make the next payment, but the total cost, liability drag and length of the repayment period matters too," Stroh said. "Carrying the burden of debt for essential expenses can limit the room households retain to absorb additional unexpected costs or make meaningful progress on other financial priorities."

Payment Pressure Mounts

Few respondents reported actually missing payments on their financial obligations over the past three months. Just 5% of respondents said their household was only able to pay "some" or "very few" of their monthly bills on time and 7% said most bills got paid on time. Meanwhile, 88% said they were able to meet all or "nearly all" of their monthly obligations.

But payment pressure affects consumers even when they remain current with the obligations. Achieve's survey reveals the lengths many households must go to make ends meet, as 34% of 3Q26 survey respondents said it was "difficult" or "very difficult" to maintain on-time debt payments the past three months.

Among consumers who face difficulty paying monthly bills on time, 66% said their household doesn't earn enough income to cover spending, while 31% point to owing money on too many different accounts and 22% said it's challenging aligning pay day at their jobs with the due dates on their debts.

Tradeoffs to Make Ends Meet are Hitting Basic Needs, Healthcare

Approximately half of respondents resorted to one or more risky financial stopgaps after they fell short on what they already owed. Among these respondents, the most frequently cited steps included reducing spending on basic needs (50%), taking on more credit card debt (32%), borrowing from family and friends (28%) and dipping into their short-term savings (25%). In more dire situations, some respondents missed at least one debt payment (18%), while others said they had to delay or skip medical treatment (19%),and others skipped or reduced prescribed medication doses (11%).

"Many consumers are keeping up with bills, but that does not mean the debt is becoming easier to manage," Stroh said. "That payment pressure quickly reaches core household needs and can even impact healthcare choices."

Methodology

The data presented is from a June 2026 survey of 2,000 U.S. consumers ages 18 and older with an active account for one or more of the following categories of consumer debt: auto loan; major credit card with a minimum outstanding balance of $100; first-lien mortgage; home equity line of credit (HELOC); student loan; and other (unsecured personal loan, store-branded credit card, buy now, pay later loan, or closed-end home equity loan).

About the Achieve Center for Consumer Insights

The Achieve Center for Consumer Insights is a think tank that leverages Achieve's team of digital personal finance experts to provide a view into the state of consumer finances. In addition to sharing insights gleaned from Achieve's proprietary data and analytics, the Achieve Center for Consumer Insights publishes in-depth research, bespoke data and thoughtful commentary in support of Achieve's mission of helping everyday people get on the path to a better financial future.

About Achieve

Achieve, THE digital personal finance company, helps everyday people get on, and stay on, the path to a better financial future. Achieve pairs proprietary data and analytics with personalized support to offer personal loans, home equity loans, debt relief and debt consolidation, along with financial tips and education and free mobile apps: Achieve MoLO® (Money Left Over) and Achieve GOOD™ (Get Out Of Debt). Achieve is frequently recognized for providing top-rated customer experience and satisfaction by both consumers and leading personal finance review platforms and has 2,200 dedicated teammates across the country, with hubs in Arizona, California, Florida and Texas.

Achieve refers to the global organization and may denote one or more affiliates of Achieve Company, including Achieve.com, Equal Housing Opportunity (NMLS ID #138464); Achieve Home Loans, Equal Housing Opportunity (NMLS ID #1810501); Achieve Personal Loans (NMLS ID #227977); Freedom Debt Relief (NMLS ID # 1248929); and Freedom Financial Asset Management (CRD #170229).

Contacts

Austin Kilgore akilgore@achieve.com 214-908-5097

Elina Tarkazikis etarkazikis@achieve.com

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Source: Company press release.

Categories: Reports and research