After a season of holiday giving, your wallet will likely have taken a hit. If that includes debt, it might be time to include financial health in your New Year’s resolutions. According to a recent Wells Fargo survey, 97% of people who plan to make New Year’s resolutions in 2026 are either considering or have already set financial goals.
Here’s how you can turn your New Year’s resolutions into progress that sticks:
Reviewing Your Spending After the Holidays
Finding yourself in debt after the holidays is not unusual. According to Lending Tree, more than a third (37%) went into holiday debt this season. Reviewing your monthly household expenses and comparing it to what you owe each month can help you get started on making a plan.
Make Your Financial Goals Workable
Setting goals is always a good way to keep your eye on the prize of debt repayment. But make them goals that are easy to stick to. This can include limiting entertainment, canceling a streaming subscription, or cooking at home instead of eating out. Setting clear monthly repayment goals can also keep you motivated and give a sense of accomplishment as you make progress toward improving your financial health.
Mapping Out Your Debt Repayment Strategy
Having a strategy in place is key to helping you pay down your debt efficiently and successfully. Many experts recommend using the snowball method, which targets the smallest debts first, providing quick wins, and the debt avalanche, where you focus on paying down the debt with the highest interest rate first.
Watch Out for Financial Pitfalls
If you’re looking into consolidating your loans, make sure to be wary of high-interest consolidation loans. These can end up costing you more money over time, ultimately extending your repayment time. You will also want to steer clear of for-profit debt relief companies, which typically have high fees, end up costing you more money in the long run, and can hurt your credit score.
Signs You Might Need Financial Guidance
If you’re struggling to keep up with rising interest rates, pay the minimum payment each month, or are seeing no noticeable dent in your debt, getting help is in order. Nonprofit credit counseling agencies can help you create a budget and set financial goals. They can also enroll you in a debt management plan, which consolidates your loans into one affordable payment, reduces your interest rate, and is designed to help you pay off your loans in three to five years.