Nine out of 10 people with debt make this one mistake that jeopardizes their finances. Here’s how to not be one of them

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If you're carrying debt, what are you doing to pay it off? If your answer is "nothing" or "making the minimum payment," then you might not be making much progress. You probably know what you need to be doing. But, like most people, avoidance has become a coping strategy.

It's a mistake that could be jeopardizing your finances: Nearly nine out of 10 people (86%) said "they've stalled on a debt decision (1)" when surveyed by fintech platform Rose Cove. Why? More than one-third (36%) of respondents cite "too many options" as a reason for doing so.

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More than half (57%) of those in debt even admitted to staying on a higher interest rate for four months or more "because comparing felt like too much work" — inaction that has cost them money. Even when a debt decision "felt overwhelming," 41% did nothing beyond making their minimum payments.

Indeed, 57% of U.S. consumers carry a balance (2) on their credit card, according to a U.S. News survey. In the face of persistent affordability challenges, more than half (56%) say they're using their credit cards to pay for basic necessities such as gas, groceries, childcare or utilities. And one in three (34%) are using them for emergencies and unexpected expenses.

While carrying credit card balances for these reasons may be a necessary evil, some U.S. consumers also carry balances because they overspend on non-essential items such as shopping and vacations.

Regardless of why people carry a balance, many are finding it hard to pay off by the end of the month. Among those carrying a balance, 22% carry it for six months to a year, one-fifth (19%) carry it for one to two years and another one-fifth (19%) carry it for five years or more.

But it's possible to move beyond inaction.

While carrying debt comes with financial costs, it also comes with psychological and interpersonal costs. For example, financial pressure arising from debt can strain a couples' relationship, especially when that debt is attributable to one person's spending — yet still affects both partners.