Record Household Debt: Almost 4 in 10 Americans worry about paying bills in numbers surpassing Great Recession era

Almost 4 in 10 Americans worry about paying bills in numbers surpassing Great Recession era

Jeffrey Clark

Almost 40% of American adults say they are concerned about keeping up with their bills, per a new CNN poll. 

"The grocery store is just outrageous right now," Ohio resident Angela Russell told CNN Business. "But it’s not just that. Everything has gone up. Clothing. My insurance." 

CNN's study finding that 39% of American adults are concerned much or all the time about paying their bills comes amid reports that Americans are holding a record amount of household debt. In the first three months of 2024, total household debt surged to a fresh record of $17.69 trillion, an increase of $184 billion, or 1.1% from the previous quarter. 

"The pressure is real. Everything is so much more expensive than it was four years ago. It’s astronomical what you’re paying," Russell said.

"I’ve had to cut back on all the fun things I like to do. I used to go to the bookstore or get magazines," she said. "Now, I get books from the library." 

In comparison, the report revealed, 37% of American adults said that they were concerned about paying their bills during the 2008 Great Recession.

"We can talk all day about how inflation is moderating, but the cumulative impact of several years’ worth of inflation has done a number on household budgets," chief financial analyst at Bankrate, Greg McBride, told CNN Business. 

McBride said that national economic reporting indicates that the economy is still "growing" – a statement that does not fully explain the effect of inflation on families. 

"The view from 35,000 feet is unemployment is low, the economy is growing and people are spending money," he said. "The reality on the ground is moderating inflation doesn’t mean prices are coming down, just that they aren’t going up as fast."

"Many have seen their buying power eroded. Even if your income has kept up with prices, you’re just treading water," McBride added.

Americans are also indicating that grocery bills are making life difficult, with more than a quarter of Americans having resorted to skipping meals to avoid paying inflated grocery store prices, according to a survey from May. 

According to a study by Qualtrics on behalf of Intuit Credit Karma, 80% of Americans say they have felt a "notable increase" in grocery costs in recent years. More than a quarter of respondents said the increased cost has led them to occasionally skip meals, while about one-third said they spend more than 60% of their monthly income on mandatory expenses such as food, utilities and rent.