Poll shows 41% of Americans expect to pay off their debt in 2022

Image source: Getty Images

Here’s what you need to do if you hope to pay off your debt in 2022.

Key points

  • A survey found that 41% of Americans expect to pay off their debt in 2022.
  • These tips can help you be more successful in paying off your debt.

The new year is a great time to set resolutions and goals. If your financial situation isn’t exactly what you’d like it to be, setting new goals is a good first step to take.

You’re not the only one who wants to set financial goals for the year. Fidelity Investments shared the results of his study on 2022 New Year’s financial resolutions.

Americans are thinking about money in 2022

The study looked at how Americans feel about money and their financial goals for the coming year. Over 3,000 adults were surveyed and many respondents hoped to prioritize debt repayment.

Here’s a look at some notable survey findings:

  • 68% of respondents were considering a financial resolution for 2022.
  • 41% of respondents want to repay their debt in 2022.
  • 42% of respondents have become more mindful of their savings and spending over the past year.
  • 72% of respondents are convinced that they will be in a better financial situation in 2022 than in 2021.

Setting financial goals at the start of the year can be beneficial. Giving yourself plenty of time to take action and track your progress can make you more successful in achieving your resolutions. There’s still time if you haven’t set financial goals for 2022.

Tips for Paying Off Debt

Whether you want to pay off your debts or pay them off completely, you may be wondering where to start. The following tips can help you succeed in achieving your financial goals:

  • Be honest. Before you start paying off your debts, it’s a good idea to take a closer look at your finances. Determine how much money you owe so you know what work needs to be done.
  • Consider interest rates. If you have multiple credit cards and loans that you need to pay off, it’s a good idea to look at the interest rates for each debt. The higher the interest rate, the faster the debt will grow if you continue to let it sit. Many people choose to pay off their debts with higher interest rates first to avoid costly additional interest charges.
  • Budget. By establishing and following a budget, you can minimize unnecessary expenses. The more extra income you have each month, the easier it will be to spend more money on your existing debt. If you’re new to budgeting, check out these five steps to making your first budget.
  • Use apps. There are many useful financial apps that can make it easier to reach your financial goals. Debt repayment apps can help you prioritize your debts, stay organized, and track progress as you work to reduce your debt.
  • Get involved and make it happen. Commit to a plan and start now. Even if you can only afford to pay off a small amount of debt each month, you can make progress. Once you get into the habit of prioritizing paying off your debt, it will be easier and seeing progress can help you stay on track.

Paying off your debts can improve your finances. By doing so, you may be able to improve your credit score, pay less interest, and have a better chance of focusing on other financial goals, like saving money for the future.

It’s never too late to make changes. If you’re looking to improve your financial situation in 2022, our personal finance resources offer tips that can help.

The best credit card erases interest until 2023

If you have credit card debt, transfer it to this top balance transfer card guarantees you an introductory APR of 0% in 2023! Plus, you won’t pay any annual fees. These are just a few of the reasons why our experts consider this card a top choice to help you control your debt. Read the full The Ascent review for free and apply in just 2 minutes.

Dora W. Clawson