A new Certified Financial Planning (CFP) Board survey shows that 83% of households in the U.S. are dealing with a debt of some kind, leading to widespread concern about its potential long-term impact on finances. The report adds that the most prevalent types of debt include credit card (60%) and mortgage (57%).
The survey points out that dealing with a hefty debt load is challenging. Around 70% of households with considerable medical debt and 60% grappling with large-scale credit card debt, express their struggle with management. Furthermore, 47% of those with significant student loans are also finding it tough to keep up.
The repercussions of high debt amounts extend beyond mere monthly payments. About one-third of households burdened with considerable medical debt have postponed treatment or procedures due to financial anxiety, leading to almost half opting to arrange repayment plans with medical providers. Similarly, 50% of those with significant credit card debt admit to frequently making only minimum payments.
As 2025 rolls around, debt reduction tops the list of resolutions, with 42% prioritizing it as their main goal for the new year. A majority of respondents, 90%, are actively strategizing to improve their debt management, either by trimming expenses or looking for ways to increase their income.
However, despite these effortful attempts, the looming shadow of debt continues to worry many. Approximately 52% expressed concern about the long-term financial implications of their debt, whereas 48% feared how debt might derail their life's plans.