A new survey reveals what's really keeping mortgage-holding Americans up at night
More than half of American homeowners are rolling a credit card balance month to month, and the pressure is disrupting sleep, cutting household spending, and reshaping how borrowers think about their debt, according to new survey data from Newrez, a homeownership company.
The survey, conducted by Morning Consult on behalf of Newrez among 2,203 US adults from June 12–14, found that 51% of homeowners carry a credit card balance from month to month.
Among that group, 51% report losing sleep over their finances, 67% feel overwhelmed by their finances at least sometimes, and fewer than half (48%) feel in control of their finances most or all of the time.
More than 7 in 10 (71%) have cut back on spending or saving over the past year because of credit card debt, including 41% who reduced travel and discretionary expenses and 37% who pulled back on groceries and everyday costs.
Despite the strain, homeowners are holding the line on their mortgages. Among borrowers carrying both a mortgage and credit card debt, 89% say they are confident they can keep up with their mortgage payments, and 90% prioritize their mortgage payment over most other bills.
An opening for equity conversations
More than half of homeowners with credit card debt (52%) have already explored consolidation options — personal loans, home equity loans, and home equity lines of credit (HELOCs) — in the past year.
Among those familiar with the tools, 71% view home equity loans as effective debt payoff mechanisms, and 69% say the same of HELOCs.
In a market where brokers are increasingly taking a financial-advising approach to debt restructuring and client conversations, the Newrez data makes that dialogue more urgent.
Jessica Eddy, a mortgage broker at Edge Home Finance in Cincinnati, described the dynamic in a recent conversation with Mortgage Professional America.
"A lot of people are sitting on so much equity, but they're drowning in credit card debt paying around 22% interest every month," Eddy said.
"So we're coming in with a more financial-advising approach."
The math makes a compelling case. A homeowner carrying the average credit card balance of $6,519 at a rate of 19.57% who switches to a three-year personal loan at an average rate of 12.41% would pay roughly $1,300 in total interest — versus nearly $2,500 under the credit card scenario, with repayment running approximately six months longer.
Mortgage loyalty holds under pressure
Three-quarters of respondents describe their credit card debt as manageable, and 84% rank paying it off as a high priority. The findings are consistent with the broader pattern of rising household debt weighing on American borrowers that has defined the post-pandemic credit landscape, with mortgage performance remaining the durable anchor.
"Homeowners are carrying a heavy financial load right now, but their belief in homeownership hasn't wavered," said Leslie Gillin, chief commercial officer at Newrez.
"Even with credit card debt weighing on them, they're focused on protecting their home and taking steps to improve their financial outlook."
With available home equity now standing at $34.9 trillion nationally, many debt-burdened homeowners already have the financial tools to act, and are looking to mortgage professionals to help them deploy them responsibly.
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