What's causing the dip in the number of people paying their bills on time?
Financial optimism among American households has sharply declined as economic reality fails to meet expectations, according to a new survey released this week by digital finance company Achieve.
While 57% of consumers anticipated financial improvement last year, only 32% actually experienced gains, revealing a significant “optimism gap” that signals deepening economic stress for many Americans.
The survey found 33% of respondents reported worsening financial situations over the past year – a stark contrast to the mere 10% who predicted decline in Achieve’s initial survey last spring.
“Households enter 2025 more pessimistic and with fewer financial gains in hand than most were expecting,” said Brad Stroh, Achieve’s co-founder and co-CEO. “The optimism gap is a warning sign that highlights the need for tools and strategies that address the financial strain facing households.”
Navigating a challenging economic climate
The findings come as Americans continue struggling with inflation, high interest rates, and new tariffs that have forced many to rely on debt for basic expenses. According to the survey, 58% of respondents use credit cards to cover essential costs, with 40% carrying that debt for more than six months.
Payment delinquency risk has risen across nearly all categories, with student loans showing the highest vulnerability at 35%, up from 32% last quarter. Even secured debts like auto loans (14%) and mortgages (10%) face increased missed payment risk.
The number of consumers paying all bills on time has dropped to 59%, down from 65% in the first quarter of 2025 and 61% in the second quarter of 2024.
When asked why their debt increased over the past three months, one-third (33%) of respondents cited difficulty making ends meet without borrowing, while 28% pointed to employment and income challenges. General overspending accounted for 21% of increased debt, and healthcare costs contributed to 16% of debt increases.
“When people are squeezed by debt levels and ongoing bills, their stress level rises,” Stroh noted. “Our data shows that even small income disruptions or timing mismatches can lead to late payments and these challenges are magnified by higher borrowing costs that make it more costly to carry debt balances.”
The survey, conducted by Achieve’s think tank, the Achieve Center for Consumer Insights, aims to complement the Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit by providing qualitative insights into consumer borrowing patterns.
Researchers surveyed 2,000 US consumers aged 18 and older with active accounts in various debt categories, including auto loans, credit cards, mortgages, and student loans. The sample included a statistically significant subset of borrowers who had been at least 30 days past due on payments within the past six months.
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