Americans struggle to act on debt repayment goals, research reveals

By Vriti Gothi

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.

The 2025 Credit Check-In report, based on a survey of 2,000 U.S. adults, paints a picture of a nation under persistent financial pressure. 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. Happy Money, which partners with credit unions, banks, and asset managers, is positioning its platform as both a financial tool and a path toward better money habits a message that resonates strongly in an economy where cost-of-living pressures are testing household resilience.

Ultimately, the Credit Check-In underscores a broader truth: financial stress in America is not simply a matter of income versus expenses, but of awareness versus action. Technology, when paired with responsible lending practices, has the potential to bridge that gap. For consumers, the right tools can mean faster debt freedom and improved well-being. For FinTech providers, it represents a pivotal moment to prove that innovation can do more than streamline transactions it can change financial lives.