Study: Borrowers Struggle to Escape Debt Despite Cutting Expenses

Americans carrying substantial unsecured debt are struggling to break free, even as they reduce everyday expenses and utilize multiple repayment strategies, according to a new study by Freedom Debt Relief and Money.com.

The study, "Deep in debt, borrowers are cutting back but still struggling," released in late September 2026, surveyed 1,800 adults with at least $10,000 in unsecured debt, excluding student loans. It found that nearly half of borrowers can only make minimum payments or are falling behind. Specifically, 28% reported they could only afford the minimum required payments, while 21% were behind on at least one account.

The findings challenge the assumption that people remain in debt due to an unwillingness to change habits. Borrowers reported cutting back on dining out, shopping, and travel, while pursuing a range of repayment strategies. Nearly one-third had withdrawn from retirement savings to pay down debt in the past 12 months, and 24% had used home equity to consolidate debt.

Borrowers prioritize debt reduction not just to lower balances or interest rates, but also to regain control, reduce stress, and create greater financial stability. The study found that 79% of respondents would accept a credit score decline to become debt-free faster, including 37% who would accept a drop of 100 points or more.

The research highlights that while borrowers are motivated and making sacrifices, they may still need external assistance to navigate the debt landscape. While 69% felt it was safe to negotiate directly with credit card issuers, only about half felt confident enough to speak with creditors. This gap may indicate a need for professional debt relief services.