As we head into a new year, resolutions dedicated to health and wellness often dominate, but financial health is also top of mind. A recent Wells Fargo survey shows that 97% of people who plan to make New Year’s resolutions in 2026 are either considering or have already set financial goals, highlighting the connection between money habits and our overall well-being.
Follow these tips to turn your financial New Year’s resolutions into real debt progress:
Taking Stock in Your Debt After the Holidays
The holidays are notorious for launching people into more debt. A report from Lending Tree shows that more than a third (37%) went into holiday debt this season. Understanding how much debt you owe, where your money goes each month, and how much is leftover for repayment is an essential first step in taking stock.
Start With Attainable Financial Goals
Setting achievable goals can help you make real progress. This can include cutting back on recreation, discontinuing a streaming service subscription, or eating in instead of dining out to put more dollars toward repayment. Setting goals on how much you pay back each month can also help you stay motivated and energized about your financial health.
Select a Debt Repayment Plan
Planning a structured approach to paying off your debt is helpful in keeping you on track and goal-oriented. Two popular approaches include the snowball method, which targets the smallest debts first to create quick successes, and the debt avalanche, which focuses on paying down the highest-interest balances first to lower overall interest costs and shorten repayment time.
Steer Clear of Financial Traps
While loan consolidation can sometimes lower interest rates and simplify payments, high-interest consolidation loans can end up costing more over time and lengthen your repayment period. Similarly, for-profit debt relief companies often charge hefty fees for services and can end up costing you more over time.
Knowing When to Ask for Help
Seeking help when you need it can result in a clear strategy. You should look into credit counseling if you’re struggling to make minimum payments, not seeing much impact in repayment, or are finding it hard to deal with high interest rates. A certified credit counselor at a nonprofit credit counseling agency can help you build a budget, set financial goals, and get you into a program like a debt management plan (DMP). A DMP can help you pay off your debt in three to five years through consolidation and a reduced interest rate.