Many consumers use the month of January to reflect on their financial goals and make resolutions to improve their personal finances. According to the latest Debt and New Year’s Resolutions Report from the Certified Financial Planner Board of Standards, debt reduction stands out as a primary financial focus for consumers this year, with nearly half of U.S. households carrying significant debt.
Key Insights:
- Debt as a Priority: For 2025, reducing debt is the top financial resolution for many Americans, with 42% of survey respondents citing it as their most important goal. This priority comes amidst ongoing struggles with various forms of debt, including credit cards, student loans, and medical bills.
- Debt Management Challenges: A substantial number of Americans report difficulty managing specific types of debt. In particular, 70% of individuals with substantial medical debt and 60% with high credit card balances are finding it increasingly difficult to keep up with payments. These struggles are compounded by concerns over the long-term impact of debt on both financial well-being and life plans.
- Financial Obstacles: Nearly 9 in 10 Americans face financial barriers to achieving their New Year’s resolutions. The most common hurdles include high expenses (38%), excessive debt (30%), and insufficient income (28%).
- Seeking Help: As Americans look for ways to tackle their financial challenges, 1 in 4 are seeking guidance from financial planners to create holistic plans for managing debt and securing long-term financial stability.
- Debt-Reduction Strategies: In response to mounting financial pressures, 9 in 10 Americans are taking proactive steps to manage debt. Popular strategies include reducing discretionary expenses (44%), sticking to a budget (41%), and seeking additional sources of income (36%).
Among resolutions being made by consumers, saving more money is at the top of the list, according to the report, well ahead of exercising more. Reducing debt is third on the list, ahead of spending more time with friends and family.
