Survey Shows 41% of Americans Hope to Pay Down Debt in 2022

Here's what you need to do if you hope to pay down debt in 2022.

The new year is an excellent time to set resolutions and goals. If your financial situation isn't exactly where you want it to be, outlining new goals is a good first step to take.

You're not alone in wanting to set financial goals for the year. Fidelity Investments shared the results of its 2022 New Year’s Financial Resolutions Study.

Americans are thinking about money in 2022

The study looked at how Americans felt about money and their financial goals for the upcoming year. Over 3,000 adults were surveyed, and many respondents hoped to prioritize paying down their debt.

Here's a look at some notable findings of the survey:

• 68% of respondents were considering a financial resolution for 2022.
• 41% of respondents want to pay down debt in 2022.
• 42% of respondents have become more thoughtful about their savings and spending over the last year.
• 72% of respondents feel confident they'll be in a better financial position in 2022 than in 2021.

Setting financial goals at the beginning of the year can be beneficial. Giving yourself plenty of time to take actionable steps and track your progress can allow you to be more successful in reaching your resolutions. There is still time if you haven't set financial goals for 2022.

Tips to pay down debt

Whether you're hoping to pay down debt or want to pay off debt completely, you may be wondering where to start. The following tips may help you succeed as you work toward your financial goals:

• Be honest. Before you begin paying down debt, it's a good idea to take a closer look at your finances. Figure out how much money you owe to know what work needs to be done.
• Consider interest rates. If you have multiple credit cards and loans you need to pay down, it's a good idea to look at the interest rates for each debt. The higher the interest rate, the quicker the debt will climb if you continue to let it sit. Many people choose to pay down debts with higher interest rates first to avoid additional expensive interest charges.
• Budget. By setting and following a budget, you can minimize wasteful spending. The more extra income you have each month, the easier it will be to put more money toward your existing debt. If you're new to budgeting, check out these five steps to setting up your first budget.
• Use apps. Many useful financial apps can make it easier to achieve your financial goals. Debt payoff apps can help you prioritize debt, stay organized, and track progress as you work to lower your debt.
• Commit and make it happen. Commit to a plan and start now. Even if you can only afford to pay down a small amount of debt every month, you can make progress. Once you get into the habit of prioritizing paying down your debt, it will be easier, and seeing progress can help you stay on track.

Paying down debt can improve your finances. By doing so, you may be able to improve your credit score, pay less in interest, and have more of a chance to focus on other financial goals like saving money for the future.

It's never too late to make changes. If you're looking to improve your financial situation in 2022, our personal finance resources offer tips that may help.