Debt and New Year's Resolutions Report
The new year is a time to reflect on the past, celebrate accomplishments and consider ways to grow and make a more significant impact in the year ahead. Whether the past year brought joy, hardship or both, many people take January 1 as a time to set new goals or start fresh by making New Year’s resolutions. These resolutions may focus on health (e.g., eating better, exercising more, prioritizing mental health), learning new skills or reconnecting with loved ones.
Personal finance is also a common focus for New Year’s resolutions, with goals like saving more, cutting discretionary spending and seeking higher-paying jobs. Many Americans also aim to better manage debt in 2025. According to the Federal Reserve, U.S. consumer credit balances exceed $5 trillion, not including mortgages and other real estate-backed debt. Americans struggling with debt can find it difficult, if not impossible, to achieve financial well-being in the new year.
The Debt and New Year's Resolutions Report examined how Americans manage debt and how it affects their financial well-being. Based on a survey of 806 Americans, the report finds the following:
- Reducing debt is Americans’ No. 1 financial priority for 2025
- Half of debt-holding Americans have difficulty managing at least one category of debt:
- Medical
- Credit cards
- College/Student loans
- Half of Americans are concerned about the impact debt will have on their:
- Financial well-being
- Life plans
- 1 in 4 Americans are seeking advice from a financial planner on how to manage debt