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Why More Americans Are Focusing on Eliminating Debt Over Building Assets

As 2025 begins, financial priorities across the United States are shifting in a powerful way. According to new research, debt reduction has emerged as the number one financial goal for Americans this year.

Instead of prioritizing asset accumulation, many households are choosing to eliminate liabilities like credit card balances, student loans, and medical debt.

This trend underscores a growing awareness: reducing debt is the foundation for long-term financial security. For those facing high levels of debt, platforms like Mitigately are making it easier than ever to find personalized, AI-driven debt relief solutions.

Debt Reduction Tops the List of 2025 Financial Goals

Nearly all Americans (97%) report having at least one financial priority for 2025. Among those, reducing debt leads the way with 42% of households naming it their top goal.

Other financial priorities include:

Saving for a major purchase such as a car, house, or vacation (21%)
Retirement planning (14%)

While savings and investments remain important, the message is clear: Americans want to tackle debt first.

The Challenges That Stand in the Way

Debt reduction is a top priority, but achieving it isn’t always simple. Nearly 9 in 10 Americans face barriers that make reaching their financial goals more difficult.

The most common obstacles include:

Managing too many expenses (38%) – Day-to-day costs, from housing to groceries, leave little room for extra debt payments.
High levels of debt (30%) – Credit card balances, mortgages, and student loans create ongoing financial strain.

More than half of Americans (52%) are also concerned about the long-term impact of debt on financial security, while 48% worry about its effect on life plans such as education, retirement, and homeownership.

The Real Impact of Debt on Financial Well-Being

Debt isn’t just a short-term problem. For many Americans, it impacts every area of life—from health to future opportunities.

Credit card debt: With high interest rates, balances often grow faster than they can be repaid, making it difficult to break free.
Housing debt: Mortgages and rising rent put pressure on monthly budgets.
Medical debt: Nearly 70% of Americans with large medical bills say they struggle to manage them, leading to delayed treatments and added stress.
Student loans: Many borrowers find it hard to manage current payments while postponing major purchases or additional education.

These challenges highlight why debt relief strategies are more urgent than ever.

How Americans Are Tackling Debt in 2025

Despite the obstacles, the majority of Americans are actively working to improve their financial outlook. In fact, 9 in 10 Americans say they are taking steps to reduce debt this year.

Some of the most common strategies include:

Reducing spending: Cutting back on dining out, entertainment subscriptions, and luxury purchases.
Boosting income: Taking on side hustles or seeking promotions to increase available cash flow.
Structured repayment: Increasing monthly loan or credit card payments to reduce balances faster.
Debt consolidation: Combining multiple debts into a single payment with a lower interest rate.

While these efforts are promising, many individuals still feel uncertain about where to start or how to choose the right solution.

The Role of Financial Guidance and Debt Relief Tools

Debt reduction is challenging without support. According to research, 1 in 4 Americans works with a financial professional such as a CERTIFIED FINANCIAL PLANNER® to create a holistic debt management plan.

But not everyone has access to traditional advisors. That’s where AI-powered debt relief platforms like Mitigately are making a difference.

By analyzing a person’s full financial situation, Mitigately matches them with tailored solutions in minutes—saving the average client around 35% on their debts.

This blend of advanced technology and personalized guidance helps consumers overcome uncertainty and take confident steps toward financial freedom.

Why Debt Reduction Comes Before Asset Building

Financial experts agree: while saving and investing are critical for long-term success, paying off high-interest debt should come first.

Here’s why:

High interest eats into savings – A credit card charging 20% interest cancels out most investment gains.
Debt limits flexibility – Monthly payments reduce your ability to save, invest, or make major life decisions.
Financial stress impacts health – Carrying heavy debt burdens is linked to anxiety, delayed healthcare, and strained relationships.

By reducing liabilities, Americans free up resources to save more, invest earlier, and build wealth with less risk.

Looking Ahead: A Debt-Free Future

The fact that debt reduction has become America’s top financial priority reflects a powerful cultural shift. Instead of chasing short-term consumption, people are focusing on financial health and security.

With 2025 shaping up to be the year of debt reduction, tools like Mitigately can help Americans:

Consolidate debt for easier management.
Lower interest rates and reduce overall balances.
Create a clear path toward financial freedom.

For many, this isn’t just about paying off debt—it’s about building a stronger foundation for the future.

Final Thoughts

Debt reduction isn’t just another financial resolution. For 2025, it’s America’s top priority, and for good reason. High levels of debt hold people back from achieving life goals, creating financial security, and planning confidently for the future.

The good news is that Americans are taking action—cutting expenses, increasing income, and exploring structured debt relief strategies. With the right tools, including AI-powered platforms like Mitigately, debt reduction is no longer a distant dream—it’s an achievable reality.

If you’re ready to make debt reduction your top priority, start today. Visit Mitigately.com and explore smarter solutions for a debt-free future.

Debt Reduction: America’s Top Financial Priority for 2025