Financial Resolutions for 2025: Paying Down Debt Takes Center Stage
As the new year approaches, many Americans are setting their sights on achieving financial stability. According to a recent survey by Bankrate, a staggering 89% of respondents have a primary financial goal for 2025. So, what’s at the top of their list?
Debt Reduction: The Top Priority
Paying down debt emerged as the leading financial goal, with 21% of respondents citing it as their top priority. This comes as no surprise, given the current state of consumer debt in the US. Credit card debt, in particular, has reached a record high of $1.17 trillion, with the average borrower carrying a balance of $6,380.
Other Financial Goals
While debt reduction takes center stage, other financial goals are also gaining traction. Saving more for emergencies, getting a higher-paying job, budgeting and spending better, and saving for retirement and investing more money are all high on the list.
The Challenges Ahead
Despite the best intentions, achieving these financial goals won’t be easy. Inflation may be slowing down, but prices remain elevated, making it difficult for consumers to make ends meet. Furthermore, credit card debt continues to climb, with the average interest rate for top-qualified borrowers still hovering around 20%.
Taking Control of Your Finances
So, what can you do to pay down debt and achieve your financial goals? Experts agree that taking matters into your own hands is key. This includes asking your credit card company for a more competitive interest rate, taking advantage of 0% transfer offers, and considering a personal loan to consolidate debt.
The Importance of Savings
While paying down debt is crucial, it’s equally important to prioritize personal savings. Having a cash cushion of three to six months’ living expenses can provide a safety net in case of unexpected expenses, helping to break the debt cycle for good.
Making Progress, One Step at a Time
Achieving financial stability takes time and effort. By setting clear goals, taking control of your finances, and prioritizing both debt reduction and savings, you can make progress towards a more secure financial future.
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