Debt can reduce the ability of consumers to achieve other financial objectives. Americans pay an average of one-third of their monthly income on debt other than mortgages, led by credit card debt:

Credit cards, 20%
Car loans, 8%
Personal education loans, 8%
Education for family members, 6%
Home equity loans and credit lines, 4%

More than half of people say debt is having a substantial or moderate impact on their ability to reach financial security, and many Americans expect to stay in debt for a long time:

1 to 5 years, 43%
6 to 10 years, 20%
11 to 20 years, 12%
For the rest of their life, 12%

Debt can cause consumers to delay purchases or investments:

Making a significant purchase, 31%
Saving for retirement, 20%
Buying a home, 18%
Getting married, 8%
Having children, 8%

"When debt is carefully managed, it can play a helpful role in a long-term financial plan — but it's a slippery slope," Mitchell says. "It can be hard to detect when healthy debt turns into runaway debt, and once that line is crossed, it can be debilitating over a long period of time. An advisor can help, whether it's by avoiding runaway debt in the first place or helping to get out of it once it's set in."

Instant Insights /

Personal debt still affects financial decisions, even after it declined

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