Alice Morgan Photo Illustration by Investopedia
What you need to know
- The CFP found in a recent report that the majority of Americans carry some form of debt. Most commonly, this is credit card debt and mortgage debt.
- Over half of Americans express concern or are extremely concerned with the impact debt may have on their long-term financial health.
- Americans cut their spending to reduce debt and create budgets. They also look for ways to boost their income.
Most households (83%) in the U.S. have some sort of debt. And more than half worry about how it will affect their long-term financial health.
According to a new study by the Certified Financial Planning Board (CFP), the two most common forms of debt are credit card debt (60%), and mortgage debt (57%).
Medical, Credit Card Debt Burden Weighs Heavy
It is difficult for those with a large debt load to keep up. Nearly 70% of those who have a large medical debt, 66% of those that are heavily indebted on credit cards and 47% with significant student loans expressed difficulties keeping up.
There are also downstream financial effects for those who have significant debt. Nearly half of patients with high medical debt had to work out repayment arrangements with the providers.
In a similar way, the half of people with significant debt on credit cards reported that they only made minimum payments.
Some people have taken proactive measures to try and reduce their debt but are still worried about the future.
In 2025, 42% said they would reduce their debt as a priority. 90% of people are trying to improve their ability to handle their debt. They do this by cutting expenses and increasing their income, among other things.
Mehr than 40% reported that they had cut back on their discretionary expenditures or developed a personal budget. Additionally, more than one-third of respondents were focused on increasing their income—either by seeking a raise, taking on a side job, or pursuing a new career opportunity.
In spite of these efforts, many people still worry about the effects debt will have on their lives in the future. About half (52%) of the respondents were concerned about the impact debt would have on their long-term financial health, while the other 48% worried that debt might disrupt their plans for the future.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
