Most Americans know the basics of getting ahead financially: spend less than you earn, build savings and pay down expensive debt. Many are already doing that work. The trouble is that the steps they take most often, like cutting back on spending, rarely make a dent in their debt, especially when credit card balances carry rates above 20% and everyday expenses compete for the same dollars.

Happy Money's 2026 Credit Check-In, a survey of 2,000 U.S. adults, found that 33% named paying down debt as one of their top financial goals. Nearly nine in 10 of them had taken at least one step in the previous six months, most often cutting back on discretionary spending (44%) or delaying a major purchase (30%). Only 10% had consolidated or refinanced.

This is the debt action gap: the distance between the effort people are putting in and the actions that would lower the rate they pay. For banks, this gap presents an opportunity to serve customers better while also building lasting growth.

Consumers are living in a K-shaped economy. The same research found that 45% of households earning $100,000 or more feel more financially secure than they did a year ago, compared with 29% of those earning less than $100,000. Some households are moving forward while others are working harder just to stay in place. And even among creditworthy consumers, credit card debt can make that gap worse.

Someone can be financially responsible and have a strong credit profile while still carrying revolving debt at rates above 20%. That doesn't necessarily make them a bad borrower, but it may mean they're using the wrong financial tool for their situation. Banks that understand that distinction have an opportunity to create better outcomes for customers while also driving responsible growth for themselves.

The research also found that debt is shaping decisions well beyond personal finance. One in five consumers carrying debt reported delaying healthcare or dental care because of what they owe. When consumers put off medical appointments, delay major purchases or place other life priorities on hold, debt evolves from a financial burden to a life-postponement problem.

That changes how banks should engage. Customers want a lower rate, less stress, more confidence and a path forward that feels achievable. Institutions that speak to that will earn attention that a rate sheet alone won't.

Most consumers know that paying down expensive debt is a good idea, and many are working at it. Banks can help by making the next good financial decision easier, whether through personalized guidance, proactive outreach, simpler digital experiences or products designed around the customer's actual financial situation.

A fixed-rate personal loan is one example. For a qualified borrower carrying credit card balances at more than 20%, moving that debt into a lower fixed rate can provide one payment, a predictable monthly cost and a defined payoff date. Consider a consumer carrying $20,000 in credit card debt. Using recent national average rates, keeping the same $580 monthly payment but moving from a 22.15% credit card rate to a 12.41% fixed-rate personal loan could save roughly $7,000 in interest and shorten the repayment period by nearly a year. Individual rates and savings will vary, but the example shows how choosing a better financial tool can materially change an outcome.

For the consumer, that's progress they can measure. For the bank, a well-underwritten consolidation loan can mean adding a quality asset while establishing a relationship with someone who may need other financial services over time. That's responsible lending in action: creating value on both sides of the relationship.

As economic uncertainty persists and household financial experiences continue to diverge, financial institutions have an opportunity to move beyond traditional product conversations and help customers with the financial decisions and goals in front of them. 

Closing the debt action gap helps consumers make faster progress on their goals and gives banks a way to build stronger relationships, healthier portfolios and more sustainable growth.

Matt Potere is CEO of Happy Money, a consumer finance company dedicated to empowering people to achieve their goals through simple, transparent loans funded by trusted financial institutions.