• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to primary sidebar

DigiBanker

Bringing you cutting-edge new technologies and disruptive financial innovations.

  • Home
  • Pricing
  • Features
    • Overview Of Features
    • Search
    • Favorites
  • Share!
  • Log In
  • Home
  • Pricing
  • Features
    • Overview Of Features
    • Search
    • Favorites
  • Share!
  • Log In

Study says while paying down debt remains a top priority for many households, a significant number are failing to take concrete steps that could ease financial strain and accelerate repayment.

August 15, 2025 //  by Finnovate

A study from consumer finance platform Happy Money has revealed a striking disconnect in how Americans think about debt versus how they manage it. While paying down debt remains a top priority for many households, a significant number are failing to take concrete steps that could ease financial strain and accelerate repayment. More than one-third of respondents ranked debt repayment among their leading financial goals, yet one in five admitted they had taken no action in the past six months to address it. Only a small fraction had consolidated or refinanced debt strategies that could reduce interest costs and shorten payoff timelines. Meanwhile, with average credit card APRs now exceeding 20%, the cost of carrying a balance is more punishing than ever, and over a third of cardholders continue to roll debt from month to month. The consequences of this inaction reach beyond personal finances. The report highlights a direct link between debt-related concerns and well-being: more than 40% of those worried about credit card payments reported an impact on their mental health, and a third said it disrupted their sleep. Middle-aged consumers appear to be feeling the pinch most acutely, with nearly half in the 35–54 age bracket carrying a balance every month. Happy Money CEO Matt Potere believes the solution lies in making responsible borrowing more accessible and better understood. He argues that creditworthy borrowers often overlook the benefits of fixed-rate personal loans, which can replace high-interest revolving credit with predictable monthly payments. This, he says, can help consumers pay off multiple cards faster, save money on interest, and even improve their credit scores. For the FinTech sector, the findings present a clear opportunity. As traditional lenders and digital challengers alike search for ways to attract and retain customers, offering transparent, affordable, and wellness-focused credit solutions could prove a powerful differentiator. 

Read Article

Category: Essential Guidance

Previous Post: « Embedded payments are seeing rising adoption in the parking sector through AI-recognition tech that lets customers just drive in and scan a QR code to enter their credit card information the first time they park, with automatic vehicle identification and charges applied on subsequent trips

Copyright © 2025 Finnovate Research · All Rights Reserved · Privacy Policy
Finnovate Research · Knyvett House · Watermans Business Park · The Causeway Staines · TW18 3BA · United Kingdom · About · Contact Us · Tel: +44-20-3070-0188

We use cookies to provide the best website experience for you. If you continue to use this site we will assume that you are happy with it.