- - Over 7 in 10 Americans say monthly debt blocks them from saving and building wealth, poll finds. Can these 4 strategies break the cycle?

Jessica WongNovember 3, 2025 at 3:00 AM

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If you feel like your debt is keeping you from saving or building wealth, you’re not the only one.

According to a survey from the National Foundation for Credit Counseling (NFCC), which shared figures with CNBC, a whopping 71% of American adults agree that monthly debt gets in the way of building of savings and wealth, and 17% say their debt keeps them from planning for the future. (1) (2)

In addition, the survey showed 33% of respondents were “just getting by” financially. Meanwhile, 32% said they had no non-retirement savings at all, which means they could be only one surprise expense away from having to pile on more debt.

“Feeling financially stressed isn’t a personal failing,” NFCC CEO Mike Croxson said in a press release. (3) “It’s often a reflection of the deep uncertainty consumers face today. Good intentions aren’t enough when the economic ground feels unstable.”

It’s easy to feel doom and gloom in the midst of a cost-of-living crisis, but it doesn’t have to be that way. Here are four strategies you can employ to break the cycle of debt.

1. Build a budget and emergency fund

It sounds basic, but building a budget is the foundation of every financial plan. A budget helps you see where your money actually goes, and where you can claw some of it back. Living paycheck to paycheck can make it hard to stick to a budget, and rising costs are leaving barely any room for savings or paying debt, but do what you can to track, stay consistent and be disciplined.

Use an app, a spreadsheet, or even a notebook. The goal is to cut small leaks: subscriptions you don’t use, takeout dinners that add up and that “quick” Target run that’s never quick.

As for setting up an emergency fund, it’s a tactic that can help keep you from going further into debt. You can start small, say $1,000, and slowly build it up over time — experts recommend keeping three to six months’ worth of expenses. Either way, the point of this fund is so you have something to fall back on in case of an unexpected expense instead of piling up more debt.

Once you’re keeping track of your money and have built a small cushion, you can start throwing any extra cash you find at your debt.

2. Ask your lender for some slack

You can start by simply asking for a lower annual percentage interest rate. Some credit card companies offer hardship programs or short-term rate reductions. Help can sometimes come with strings, so you’ll want to do your homework.

The best time to try is as soon as you’ve got your budget in place to show you’re serious about paying down debt.

3. Roll everything into one payment

Debt consolidation can be a way to simplify your debt. The goal is to have one payment, one interest rate and one finish line. Consolidating all of your debt into a single loan is meant to simplify things.

As always, research the terms and conditions and be aware of hidden fees like balance transfer fees and variable rates after promotional periods that can eat into your budget.

4. Get professional help

If you’re overwhelmed or just don’t know where to start, a credit counselor can help you get back on track. They can help you review your finances and build a roadmap to financial stability that’s tailored to you. Although this may come at a charge.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

National Foundation for Credit Counseling (1, 3); CNBC (2)

This article originally appeared on Moneywise.com under the title: 7 in 10 Americans say monthly debt blocks them from saving and building wealth, poll finds — 4 ways to break the cycle

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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