Consumers Say Thinking About Debt is ‘Overwhelming’

Spinwheel, a consumer credit data and payments company, recently published a consumer survey that revealed how shoppers feel about debt and how they manage it. The results revealed the complexities of having debt while also spotlighting differences between generational cohorts.
The authors of the report, which was based on a survey of 600 adults, concluded that debt is overwhelming for consumers. The report showed that regardless of the amount or type of debt, 57 percent of consumers polled “agree that thinking about debt is overwhelming. Among younger generations, this is even higher—72 percent of millennials and 74 percent of Gen Z consumers agree with this sentiment.”
Still, most of the respondents said they feel confident about their overall debt picture. “But confidence fades when the questions shift from knowing what they owe to understanding what to do about it,” the report stated.
Other key findings include that 28 percent of respondents said they avoid looking at their household finances. Among Generation Z consumers, 50 percent said they did the same. On the good news side, 90 percent of shoppers polled said they have a clear picture of how much money they owe, which includes credit card debt, loans, mortgages and buy now, pay later (BNPL) purchases.
Another notable data point was that 58 percent of respondents said they don’t believe their credit score has ever prevented them from accessing debt. And when asked if they know the interest rates on their credit cards or loans without looking, “nearly half (49 percent) said no,” the report stated. “At the same time, nearly one-third of all respondents (31 percent) agree they want to consolidate their debt but don’t know how. And, for Gen Z respondents, 52 percent want to consolidate but aren’t sure how to do so.”
One surprising survey result was that Gen Z emerged as the only generation saying that they feel more financial pressure based on the number of payments they manage instead of the total amount owed. “This points to an interesting shift in borrower perspectives,” the report noted. “As debt accumulates, complexity is becoming a bigger pain point than simply dollars owed.”
The results also showed that 50 percent of consumers polled said say they stay with the financial providers they already use when considering new debt. However, only 36 percent of Gen Z and 33 percent of millennials polled said they remain with providers they already use when considering new credit options.
When it comes to AI, 20 percent of Gen Z is increasingly more likely to leverage AI for insights and information (20 percent) or ask their friends and family for recommendations (26 percent) compared to other generational cohorts.

Facts Only

* A survey was conducted among 600 adults regarding debt management.
* Fifty-seven percent of polled consumers agreed that thinking about debt is overwhelming.
* Seventy-two percent of millennials and seventy-four percent of Gen Z consumers agree that thinking about debt is overwhelming.
* 28 percent of respondents said they avoid looking at their household finances.
* Fifty percent of Generation Z consumers said they avoid looking at their household finances.
* Ninety percent of shoppers polled have a clear picture of how much money they owe, including credit card debt, loans, mortgages, and buy now, pay later (BNPL) purchases.
* Fifty-eight percent of respondents do not believe their credit score has ever prevented them from accessing debt.
* Forty-nine percent of respondents said they do not know the interest rates on their credit cards or loans without looking.
* Thirty-one percent of respondents agree they want to consolidate debt but do not know how.
* Fifty percent of consumers polled stay with the financial providers they already use when considering new debt.
* Thirty-six percent of Gen Z polled remain with existing providers when considering new credit options.
* Thirty-three percent of millennials polled remain with existing providers when considering new credit options.
* Twenty percent of Gen Z is increasingly more likely to leverage AI for insights or ask friends/family for recommendations compared to other cohorts.

Executive Summary

Consumer debt presents a significant challenge, with 57 percent of consumers agreeing that thinking about debt is overwhelming, a sentiment amplified among younger generations, where 72 percent of millennials and 74 percent of Gen Z consumers share this feeling. Despite this feeling of overwhelm, a majority of respondents expressed confidence in their overall debt picture. A notable finding is the gap between knowing what one owes and understanding how to manage it; nearly half of respondents do not know the interest rates on their credit cards or loans without checking, and for those who want to consolidate debt, knowledge gaps are present, with 31 percent generally wanting consolidation but uncertainty about the process. While 90 percent of shoppers have a clear view of total obligations across various debt types, financial management confidence is conditional upon actionable knowledge. Furthermore, there is a disparity in staying with existing providers; while 50 percent of consumers maintain their financial providers, this figure drops significantly for Gen Z and millennials when considering new credit options.

Full Take

The data reveals a fundamental tension between awareness and agency regarding consumer debt. The overwhelming sense of being overwhelmed, especially among younger cohorts, suggests that the mere accumulation of financial complexity is psychologically taxing more than the sheer magnitude of the debt itself. This difficulty in shifting focus from "knowing what they owe" to "understanding what to do about it" points toward a systemic failure in providing accessible, actionable financial literacy frameworks. The surprising finding that Gen Z views payment management as a source of pressure rather than just total obligation suggests a cultural shift where process complexity is weighted more heavily than quantitative deficits. The persistence of knowledge gaps regarding interest rates and consolidation processes—where nearly half are unaware of rates and substantial percentages lack knowledge on consolidation methods—demonstrates that the structure of financial services creates barriers to self-advocacy, regardless of access to information. Furthermore, the reluctance to seek new providers from established sources among younger demographics contrasts with general consumer behavior, indicating a potential disequilibrium between existing relationships and optimal financial choices. The increased reliance on external knowledge mechanisms, such as AI recommendations or social networks, for navigating this complexity underscores a demand for immediate, personalized guidance that current institutional structures are not fulfilling.
Bridge Questions: What specific interventions can bridge the gap between awareness of debt amounts and the ability to execute complex consolidation strategies? How does the observed generational divergence in financial pressure reflect broader societal shifts in work-life balance and economic stability? What structural changes are necessary to ensure that credit access is decoupled from inherent complexity?