Rising prices have made debt less about choice and more about necessity. Zety, a resume templates service, has released its Survival Debt Report, revealing that many workers are trapped between covering daily expenses and planning for the future, with credit card balances piling up and financial sacrifices cutting into everything from travel to retirement savings.
The survey of 1,005 U.S. employees found that more than half (56%) say their salary isn’t enough to both manage debt and contribute to future savings, while 48% have relied on debt in the past year to pay for essentials like groceries and utilities.
Key Findings
- Credit card debt dominates – 71% of workers carry credit card balances, making it the most common form of debt.
- Debt payments are a struggle – 1 in 5 (21%) can only make minimum payments on their debt and another 9% often can’t even meet minimum payments.
- Survival debt keeps workers from saving – 56% say their salary isn’t enough to both manage debt and save for the future.
- Inflation is fueling borrowing – 48% have relied on borrowing in the past year for essentials like food and utilities.
- Sacrifices are widespread – 70% have had to cut back on major life expenses, including travel (44%), retirement savings (22%), and even medical care (10%).
How Workers Are Managing (or Not Managing) Their Debt
For many Americans, debt management is a balancing act that often leans toward survival rather than strategy. While some are making efforts to stay ahead, others are falling behind or barely keeping up.
Only 27% aggressively pay off their debt to get rid of it quickly. 43% of respondents said they pay more than the minimum balance when possible, and 21% admit to making only minimum payments. Another 9% say they struggle to even meet those minimums and often get hit with interest charges.
The types of debt people carry are equally diverse, with credit cards leading the list:
- 71% hold credit card debt
- 37% have mortgages
- 30% carry auto loans
- 23% are paying off student loans
- 17% have medical debt
- 17% have personal loans
- 10% owe through Buy Now, Pay Later services
- 7% have home equity loans or lines of credit
- 6% have tax debt
- 2% use payday or title loans
- 1% carry business loans
Inflation Pressures Push Borrowing
Instead of building savings or reducing balances, workers are leaning on credit to cover basic needs amidst inflation.
- 56% say their salary isn’t enough to both manage debt and save for the future.
- Due to inflation, 48% have relied on debt to cover essential expenses (e.g. groceries and utilities) in the past year.
“What stands out in these findings is how pervasive financial strain has become. Employees are juggling multiple debts while trying to cover day-to-day expenses, a pattern we call ‘survival debt.’ This kind of borrowing often comes at the expense of important life milestones—buying a home, saving for retirement, or investing in their careers,” said Jasmine Escalera, career expert for Zety. “These are choices no one should have to make lightly, and they illustrate just how much economic pressures are influencing workers’ decisions and outlooks.”
Debt-Driven Lifestyle Tradeoffs
Americans are making significant sacrifices to stay afloat financially. Among those surveyed:
- 44% have postponed or skipped travel or vacations
- 41% have cut back on entertainment or dining out
- 36% have given up hobbies or personal interests
- 24% put off buying or upgrading a car
- 22% delayed saving for retirement
- 16% have given up buying a home
- 10% even skipped necessary medical care or prescriptions
- 8% delayed having children or growing their families
Only 30% said they haven’t had to give up anything to manage their debt.
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Tags: cost of living, credit card debt, debt, entertainment, lifestyle, Payroll, travel, vacations
