Many Americans are focused on personal debt reduction and money management as 2024 draws to a close, according to the CFP Board’s newly released Debt and New Year’s Resolutions Report.
Almost all Americans (97%) say they have at least one financial priority for 2025, the CFP Board says in a news release. Reducing debt was cited as a top priority by 42%, saving for a major purchase such as a car, house or vacation by 21% and retirement planning by 14%.
Almost 90% of Americans say their ability to achieve their 2025 resolutions faces obstacles — having too many financial burdens and not enough resources. Specifically, the obstacles include having too many expenses (38%) and high levels of debt (30%). In general Americans worry about debt’s long-term effect on their financial well-being (52%) and life plans (48%).
“Debt is a major issue for most Americans that affects both immediate finances and the ability to plan for the future,” said CFP Board CEO Kevin R. Keller, CAE. “As we look ahead to 2025, a CFP professional can help people create a clear, strategic plan to tackle debt and pursue all of their financial goals with confidence.”
Half of Americans with debt say they have a hard time managing at least one type of debt. About 70% with substantial medical debt have difficulty with it, and 60% with a large amount credit card debt have similar problems.
Housing and credit card are a significant problem for many. Large credit card balances can make it difficult to reduce reliance on credit or make more than minimum payments, which prolongs debt repayment, according to the release. Problems with housing debt prompt some to explore refinancing to ease financial pressure.
Although less common, medical debt can profoundly affect stability and personal well-being, including to delaying necessary treatments and increasing financial strain. Student loan borrowers also report problems, with many struggling to manage existing loans while hesitating to take on new debt for major purchases or education. Many seek deferment, forbearance or other strategies, while some miss payments or postpone further education altogether.
About 90% of Americans are working to ease their burden of debt in 2025, with planned actions including reducing spending, increasing income and managing debt more effectively.
Many plan to reduce discretionary expenses like dining out and streaming services, adhere to budgets and choose lower-price options like store-brand products. Recognizing the importance of increasing financial resources, some seek to boost their earnings.
Many Americans are embracing structured debt-reduction strategies like increasing loan or credit card payments and exploring debt consolidation. But many don’t know how to start or lack access to financial guidance, which the CFP board says demonstrates the need for better financial education and support systems.
“Our research reveals a strong desire among Americans to improve their financial well-being, but there’s a clear need for more resources and guidance, especially with navigating debt and budgeting effectively,” said Kevin Roth, managing director of research at CFP Board. “One of the most significant findings is that Americans need to feel more equipped to take actionable steps. Working with a CFP® professional offers a starting point for many to begin this journey.”
