Just like the gyms get full after the new year, with many making resolutions for a healthier year, pledging to be financially healthier is also a popular resolution goal. According to a recent Wells Fargo survey, 97% of people who plan to have New Year’s resolutions in 2026 are considering or have already set financial resolutions as a part of their goals.
If you’re hoping to turn your New Year’s resolution into real debt progress, here’s how to get started on making your resolution stick.
Post-Holiday Financial Assessment
If you’re heading into January with holiday debt, you’re not alone. A report from Lending Tree shows that more than a third (37%) went into holiday debt this season, averaging $1,223, which is up from last year’s average of $1,181. The first way to combat the spend is to understand how much debt you owe. Going over all your household expenses can help you get a real picture of how much you owe, how much you spend each month, and how much is leftover to put toward paying down debt.
Set Achievable Financial Goals
Start by setting financial goals that are easy to hit. Can you reduce your recreation spending this month to put more toward your debt? Can you get rid of a streaming service that will allow you to put more money away? Finding small ways to cut back and pay down debt will result in large impacts.
Choose a Debt Repayment Strategy
Strategically planning how to pay down debt provides a clear path forward. Financial experts often recommend structured approaches to make repayment more manageable. Two common methods are the snowball method, which focuses on paying off the smallest balances first to build motivation, and the debt avalanche, which prioritizes debts with the highest interest rates to reduce the total amount paid over time.
Avoid New Year’s Financial Pitfalls
Although consolidating loans can help reduce interest rates and overall repayment, beware of high-interest consolidation loans, which may promise simplicity but often increase the total cost of debt and extend repayment. You’ll also want to avoid for-profit debt relief companies, which typically charge high fees for services that may be available for free through nonprofit credit counselors.
When to Get Help
Knowing when to get help is just as important as having a plan. If you’re struggling with minimum payments, relying on credit cards for household expenses, or have experienced rising interest rates, a nonprofit credit counseling agency can help you get back on course. Certified counselors can help you create a workable budget, plan for the future, and enroll you in a debt management plan at little to no cost, depending on the service.