Experian Survey: Finding Ways to Beat Unmanageable Debt

A Winning Strategy for Debt Relief

In addition to being a star athlete, Flau'jae Johnson is a passionate advocate for community and financial empowerment. That's why for every March Madness win by Johnson's LSU team, Experian relieved an additional $100,000 of debt for Louisiana families—an extra $300,000 in all.

"Playing basketball has always been about more than just scoring points—it's about creating an impact," Johnson says. "When I compete, I'm motivated knowing each victory amplifies our message of financial empowerment and relief."

Experian's debt relief initiative is part of its commitment to supporting diverse communities through financial relief and education. Louisiana has one of the highest poverty rates in the U.S.

"My journey in basketball has taught me that true success comes from lifting others up," Johnson says. "With Experian providing an additional $100,000 with each LSU win, we're not just talking about a change—we're making it happen for families."

Survey: Nearly 1 in 4 U.S. Adults Have 'Unmanageable' Debt

With consumer debt at record highs, plenty of Americans could use an MVP on their financial team. Nearly 1 in 4 U.S. adults (23%) currently have unmanageable debt, according to a survey of more than 1,000 people conducted for Experian in March 2025.

What defines "unmanageable" debt? Respondents said they consider debt unmanageable if it forces them to choose between debt payments and basic necessities, causes constant stress or keeps growing even though they're making payments.

The good news: 45% of U.S. adults report having paid off debt that they once considered unmanageable. To help accomplish this goal, 36% took an additional job or side hustle, 26% used the snowball method (paying off smaller debt balances first) and 23% used budgeting apps.

Beyond simply reducing debt balances, paying off debt helps respondents by improving their peace of mind (45%), helping them sleep better at night (35%) and freeing up time for family and hobbies (35%). It's also a source of pride: Survey respondents say improved credit scores, getting out of debt and accumulating savings are the financial wins they're proudest of.

To avoid accumulating more debt, U.S. adults said they're avoiding buy now, pay later payment options and limiting their use of credit cards. Sticking to a budget for discretionary spending, using the 50/30/20 budgeting rule and focusing on experiences over material things are other top tactics survey respondents said they are using to achieve their financial goals.

How to Pay Down Debt and Improve Financial Literacy

Are you ready to fire up a full-court press and wipe out your debt? Make these moves to help free up cash.

1. List all your debts, including total amount owed, monthly payments and due dates.
2. Use a budgeting app or spreadsheet to list your monthly net income and expenses, including both essentials and discretionary spending.
3. Determine how much cash you have to work with by subtracting your expenses from your income.
4. Reduce your expenses or increase your income if the amount left over isn't enough to tackle your debt.

Once you've got some extra money to work with, try these winning strategies for getting out of debt.

• The 50/30/20 budget uses 50% of your net income for essentials, such as groceries and rent; 30% for discretionary spending such as entertainment; and 20% toward savings and paying off debt.
• With the debt snowball method, you make minimum payments on all your debts and put any extra money toward the debt with the smallest balance. When that's paid off, focus on the next smallest debt.
• With the debt avalanche method, you direct any extra money toward the debt with the highest interest rate.
• A nonprofit credit counselor can help you come up with a plan for tackling debt.

Thriving, or Just Surviving? Understanding Credit Can Make the Difference

Financial literacy gives you the skills to manage your money effectively and is essential to achieving financial security. April is Financial Literacy Month, making it the perfect time to improve your financial literacy.

"Growing up, I saw how financial knowledge could be the difference between struggling and thriving," Johnson says.

Knowing how debt and credit affect your financial security is key to financial literacy. A good credit score can make it easier to qualify for low-interest credit and loans, helping you achieve big goals like buying a car or a home. Experian offers free tools and resources to help you understand and manage your credit, including:

• Your free credit report and credit score
• Free credit monitoring services to track your credit score and get alerts of important changes
• The free Experian app to help monitor your money
• Experian Boost^®ø to help improve your credit scores for free
• Experian Go™ to start your credit journey and get expert guidance on building credit

Rebounding from debt isn't a layup, but with the right financial skills, it can be done. Nearly 1 in 4 U.S. adults (23%) in Experian's survey said they have a financial Cinderella story, whether it's saving money from every paycheck, having paid off a major debt or having enough money to invest. Brush up on your financial literacy, practice positive financial habits such as budgeting and saving, and you too could declare a victory over debt.