Are people struggling to pay bills?

Yes, a significant number of people, particularly lower-income individuals, women, and minority groups, are struggling to pay bills, with millions facing financial strain due to rising costs, increased debt, and insufficient savings, often resorting to late payments or cutting necessities. Recent surveys show many Americans are paying bills late, feel less financially stable than before, and struggle to cover essential expenses beyond basic needs, even as household debt levels rise, notes this KBTX article.

Are Americans struggling to pay their bills?

Yes, recent data from late 2024 and 2025 indicates that a significant number of Americans are falling behind on bills, especially utilities, due to rising living costs, with overdue balances increasing substantially and nearly 1 in 6 adults missing payments, disproportionately affecting lower-income households, parents, and younger adults.
 

Are people having trouble paying bills?

One-quarter — 26% — of consumers are struggling to pay the bills, according to a recent PYMNTS study. Keep reading to learn the five types of people having trouble staying financially afloat, as this might hit close to home.

Are people falling behind on bills?

A recent analysis of consumer data shows that more Americans are falling behind on their bills to their utility bills. The Century Foundation, a liberal think tank, stated in a new report that past-due balances to utility companies spiked 9.7% a year to $789 between the April-June periods of 2024 and 2025.

What to do if you're struggling to pay bills?

As well as coming to an arrangement on the money you owe them, you should also talk about future bills – especially if you think you may struggle to pay them. Make a budget, work out what money you have left after it, and ask the council for help. Find out more in our guide Help if you're struggling to pay Council Tax.

Everyday People Can't Afford to Pay Their Bills

What to do when struggling to pay bills?

1. Highlights: If you're facing multiple overdue bills, prioritize paying your necessary expenses first. ...
2. Create a list of your bills. ...
3. Prioritize missed payments. ...
4. Pay bills with the highest interest rates. ...
5. Create a budget and track your spending. ...
6. Watch out for debt relief scams. ...
7. Consider financial assistance programs.

What is the 3 6 9 rule of money?

Those general saving targets are often called the “3-6-9 rule”: savings of 3, 6, or 9 months of take-home pay. Here are some guidelines to help you decide what total savings fits your needs.

Are most people financially struggling?

Yes, a significant portion of people, especially in the U.S., are struggling financially, with recent data showing over 70% of Americans feeling financially unhealthy, unable to afford basics, or living paycheck-to-paycheck, with middle-income families and certain demographics hit particularly hard by high costs and debt, though some reports show slight improvements in certain areas like housing affordability. 

How many Americans are 100% debt free?

Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve.

What is the 70% money rule?

The 70-20-10 Rule is a simple budgeting framework. This framework divides your income into three areas: 70% for necessary expenditures, 20% for savings and investments including essential security measures like life insurance, and 10% for debt repayment or addressing financial goals.

What are five warning signs of financial trouble?

10 Warning Signs Of Financial Trouble

• Living Beyond Your Means. ...
• Misusing Credit. ...
• Overusing Credit. ...
• Poor Money Management. ...
• Lack of Budgeting Tools or Planning. ...
• Personal Issues. ...
• Tax Issues. ...
• Avoidance.

How to live on $1000 a month after bills?

How to Live on $1,000 a Month

1. Assess Your Situation. You can't really learn how to manage your money better if you don't know where you're starting from. ...
2. Separate Needs From Wants. ...
3. Lower Your Housing Costs. ...
4. Get Rid of Your Car. ...
5. Eat at Home. ...
6. Negotiate Your Bills. ...
7. Learn to Barter and Trade. ...
8. Get Rid of Debt.

Are Americans struggling financially in 2025?

Yes, many Americans struggled financially in 2025 due to rising costs, with surveys indicating nearly half felt their finances worsened, many living paycheck-to-paycheck (around 24-67% depending on definition), and significant portions delaying care or cutting groceries, despite some overall economic growth. Issues like unexpected expenses, difficulty affording necessities (housing, food), and high credit card debt were common, impacting middle-class families and diverse communities significantly, although billionaires saw wealth increase. 

Is $40,000 a year considered poor?

A $40,000 salary is classified as lower-middle class, which is defined as households that earn between $30,001 and $58,020 a year.

How many Americans have $20,000 in credit card debt?

A majority of Americans (53%) carry some, with an average balance of $7,719. However, a third of those carrying debt (32%) owe $10,000 or more, while almost 1 in 10 (9%) have credit card debt over $20,000.

Is being debt free the new rich?

Yes, for many people, being debt-free feels like the new rich because it provides immense financial freedom, peace of mind, and security, even if it doesn't mean having millions in the bank; it shifts the definition of wealth from pure income to a lack of financial burdens, allowing for more saving, investing, and enjoying life without stress. While traditional wealth is assets minus liabilities, eliminating debt frees up income for wealth-building, making it a significant step towards financial well-being and independence, especially as many struggle with rising costs and stagnant wages. 

Which gender has more debt?

Men have 2 percent more credit card debt than women. Men have 9.7 percent more mortgage debt than women. Men have 20 percent more personal loan debt than women. Women have 2.7 percent more student loan debt than men.

Is $20,000 in credit card debt a lot?

U.S. consumers carry $6,501 in credit card debt on average, according to Experian data, but if your balance is much higher—say, $20,000 or beyond—you may feel hopeless. Paying off a high credit card balance can be a daunting task, but it is possible.

What's the average debt of a US citizen?

The average American household has over $100,000 in total debt, with figures around $105,000 as of late 2025, primarily driven by mortgages, though amounts vary significantly by age and debt type, with younger generations typically holding less than older ones, and credit card debt showing high interest burdens. 

What is the $27.40 rule?

The $27.40 Rule is a personal finance strategy to save $10,000 in one year by consistently setting aside $27.40 every single day ($27.40 x 365 days = $10,001). It's a simple way to reach a large financial goal by breaking it down into small, manageable daily habits, making saving feel less intimidating and more achievable by cutting small, unnecessary expenses like daily coffees or lunches.
 

What generation is struggling the most?

Gen Xers have been the most stressed generation for over a decade. In their 40s and 50s, Gen Xers have consistently reported higher stress levels than other generations since at least 2012.

How many Americans have $100,000 in savings?

While exact figures vary by definition (savings vs. retirement assets) and source, roughly 12-22% of American households have over $100,000 in checking and savings, while around 14-22% have $100,000 or more in retirement accounts, with significantly higher percentages for older age groups (especially 55-64 and 65+). Many sources show that a large portion of Americans (around 80%) have less than $100,000 saved overall, highlighting a significant savings gap. 

How to turn $1000 into $10000 in a month?

Turning $1,000 into $10,000 in one month requires high-risk, high-reward strategies like aggressive trading (options, day trading) or launching a fast-scaling business (e-commerce, high-demand freelancing, flipping items/services like window washing), not traditional investing, which takes years; focus on intensive effort, digital marketing, and creating value quickly, as achieving a 900% return in 30 days is extremely difficult and involves significant risk of loss. 

How long will $500,000 last using the 4% rule?

Your $500,000 can give you about $20,000 each year using the 4% rule, and it could last over 30 years. The Bureau of Labor Statistics shows retirees spend around $54,000 yearly. Smart investments can make your savings last longer.

What are the 3 M's of money?

THE 3 MS OF MONEYThe Three 'M's' of Money: How To Make, Manage and Multiply Your Income.