What’s pushing many Americans into a debt spiral?

investmentnews.com:

A recent survey by Achieve, a digital personal finance company, highlights the challenges American households face in managing debt amid rising inflation and stagnant wages.

The study, conducted by the Achieve Center for Consumer Insights, surveyed 2,000 consumers across six categories of consumer debt, including credit cards, mortgages, auto loans, and student loans.

Results showed that nearly one-third of respondents found it difficult to pay their recurring debts on time, with 65 percent of those citing insufficient income as the primary reason. Other issues included owing money on too many different accounts (39 percent), timing mismatches between income and due dates (27 percent), and difficulty tracking all their debts (14 percent).

“Skipping payments on financial obligations in order to afford essentials is the type of decision driving more everyday people deeper into debt,” Achieve co-founder and co-CEO Andrew Housser said in a statement. “This research highlights the choices that many consumers have to make month after month to simply stay afloat.”

Respondents struggling with their household finances are prioritizing specific payments over others. The survey found that personal and student loans are most likely to be paid late or skipped entirely, while bills for mobile phones, mortgage/rent, and insurance are typically paid on time.

Twenty-four percent of respondents expect to be late on student loan payments in the next three months, while 16 percent foresee difficulties with personal loans, and 11 percent anticipate trouble with buy-now, pay-later loans.

“This data shows why the inability to enroll student loans in a debt resolution program or get them discharged in bankruptcy is an outdated and ineffective