The average consumer carries around $21,600 in non-mortgage debt, according to September 2025 Experian data.
In a survey by personal finance business Achieve.com and Money.com, nearly a third of Americans said their unsecured debt — such as balances on credit cards or personal loans not backed by collateral — increased over the last year. The higher those balances climb, the less likely a borrower is to feel in control.
And whether you earn $40,000 or $400,000 a year, ballooning debt can affect your life.
How debt affects the everyday
To manage growing balances, Achieve survey respondents holding "unmanageable" debt said they reduced spending on basic needs (47%), skipped a monthly bill or debt payment (37%), or racked up more debt on their credit cards (34%). Around a quarter pulled back on retirement savings or investments.
These are routine behaviors Matthew Barnard, an Illinois-based fee-only financial planner observes in his practice, Maplewood Wealth.
Barnard advises mostly high earners. This includes attorneys carrying large student loans, which are a type of unsecured debt. Even borrowers who refinance to a lower interest rate after graduation still appear afflicted by the lingering debt, he says. Some end up paying the minimum on their balances despite their high incomes and holding significant cash because they're afraid to invest. "The debt itself is just this huge, huge, huge elephant in the room," he says, and can lead to a state of financial paralysis.
Other clients, Barnard says, take a "head in the sand" approach, ignoring their debt and hoping it doesn't have negative consequences. In either case, he says, there is likely a mental or emotional block that causes them to cope in this way.
Uncovering the cause, stopping the cycle
LaQueshia Clemons, a Connecticut-based financial therapist with Freedom Life Therapy and Wellness who paid off thousands of dollars of her own debt, says there is an inextricable link between emotions and money. Some people find that they have unresolved trauma around money, a general misunderstanding of financial tools, poor habits they picked up during childhood, or everyday stressors from a job or a relationship that contribute to avoidance or overspending. More likely, it is some combination of these factors that leads to unmanageable debt, Clemons says.
Clemons' experience aligns with the results of the Achieve survey, in which feelings of anxiety, depression, overwhelm, shame, and hopelessness were frequently cited among survey respondents, with some even reporting lack of sleep and relationship troubles related to their financial stress.
To that end, Barnard steps outside of the spreadsheet to help overwhelmed or indecisive clients find a solution for their debt, even if it means putting extra income toward low-interest balances rather than into the stock market. "If paying it off would allow them to feel healthier, or allow them to sleep better, then I want them to just pay it off," he says.
Smart debt solutions
Most respondents to the Achieve survey reported feeling optimistic about their debt situation: 75% said they believe it will improve. Nearly half are open to smart repayment strategies such as consolidating multiple debts into a single loan (48%) or working with a debt relief company to negotiate a settlement (44%).
About one-third of respondents, however, said they don't know where to turn for help.
The National Foundation for Credit Counseling is an excellent resource for connecting borrowers with free debt counselors and programs in their area. Counselors can offer debt management strategies, including guidance on consolidation and debt relief, and help borrowers avoid or navigate bankruptcy.
Borrowers who are struggling to keep up with unsecured debt may also consider speaking with a reputable debt relief company. Many providers evaluate a consumer's overall financial situation and help determine whether debt settlement, debt consolidation, or another strategy may be the most appropriate path. Because every financial situation is different, it's important to evaluate all available options before choosing a course of action.
For borrowers who suspect they have deeper-rooted issues around money, consulting a financial advisor or financial therapist who can not only help with practical debt management but facilitate conversations around mental health and suggest behavioral changes might be necessary.
"I think we have to face it," says Clemons. "But we have to face it with somebody who can talk through the emotions of it — because it's not just the numbers."
