As the new year unfolds, more Americans are placing a higher priority on reducing debt than on losing weight. A recent survey by LendingTree reveals that 44% of respondents have chosen to tackle debt as their primary New Year’s resolution, surpassing the 32% who aim to shed pounds.
According to Matt Schulz, chief credit analyst at LendingTree, this shift in priorities highlights the financial strain many people are currently experiencing.
“Prices remain high, and while interest rates aren’t at their highest, they are still substantial. With debt at record levels, it’s no surprise that people are focusing on paying it down as they head into 2025,” Schulz said.
The survey also identifies parents of young children as one of the groups most focused on debt reduction. The rising costs of childcare and other daily expenses make managing debt particularly urgent for families, Schulz noted.
For those feeling overwhelmed by their financial burdens, Schulz offers practical advice. He encourages individuals to start by creating a budget that tracks both income and expenses. Additionally, he suggests using zero-percent interest balance transfer cards or low-interest personal loans to consolidate debt and reduce interest rates.
“The key is consistency—taking small, steady steps toward your goal,” Schulz emphasized. Persistence, he adds, is crucial for long-term success.
Schulz also recommends negotiating with credit card companies to lower interest rates. A 2024 LendingTree study found that 76% of people who requested rate reductions were successful, with an average decrease of 6%.
In conclusion, while weight loss remains a popular New Year’s resolution, the current economic climate is prompting many Americans to prioritize financial stability and debt reduction as a more pressing concern.
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