Rising Costs Add Pressure as Fewer Consumers Meet Financial Goals

There is a disconnect between consumers’ financial expectations and their actual economic experience, according to a survey from Achieve, a digital personal finance company. In Achieve’s 2024 survey, 57% of respondents said they anticipated their finances would improve over the following year. However, by April 2025, only 32% of households reported experiencing those gains.

Fewer Consumers Saw Expected Financial Improvement

The data point to increasing strain on household budgets, as inflation, elevated interest rates and newly imposed tariffs pressure consumers. The survey found that 33% of consumers reported a decline in their financial situation over the past year, a sharp rise from the 10% who expected a downturn, according to the company’s spring 2024 survey. As a result, more individuals are turning to debt to cover basic expenses.

The survey offers a qualitative perspective on consumer debt trends, complementing data from the Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit. Survey results underscore how persistent economic challenges are making it harder for many households to regain financial stability. The findings reveal how households are managing debt, as 25% of consumers reported taking on more in the past three months, consistent with this year’s first quarter.

Debt is increasingly being used to cover basic needs, with 58% of respondents relying on credit cards for essential expenses. Among that group, 40% have carried this debt for more than six months, indicating long-term reliance.

Bill Payment Trends Reflect Continued Strain

Signs of financial strain are also becoming more apparent: 37% of respondents say they’re struggling to pay debts on time, up slightly from 36% last quarter. Just 59% report paying all their bills on time, a drop from 65% in Q1, and 61% in the inaugural Q2 2024 survey.

In Q2 2025, missed payment risk on student loans increased to 35% (up from 32% last quarter), while even secured debts such as auto loans (14%) and mortgages (10%) are at greater risk of a late or missed payment, the survey found.

Among respondents whose debt increased over the past three months, one in three (33%) pointed to difficulty making ends meet without borrowing, 28% cited employment and income challenges, and 21% acknowledged falling victim to general overspending. Health care costs and other medical issues remain a key challenge, with 16% of respondents attributing their debt to these.

The findings are based on a survey of 2,000 U.S. adults with at least one active form of consumer debt.