Americans' top financial goal for 2025 is to pay off debt. Here are some tips to help achieve this goal.

• In 2025, many Americans aim to enhance their financial situation for the New Year.
• Paying down debt is a top financial goal, one recent survey found.
• Experts suggest that in order to reduce those balances effectively, it is necessary to change your priorities.

According to a survey from Bankrate, paying down debt is the most common financial resolution for 2025.

Almost 2,500 adults were surveyed in November, and 89% of them stated that they have a primary financial objective for 2025.

Americans' top financial goals include paying down debt, saving for emergencies, getting a higher paying job, budgeting and spending better, saving for retirement and investing money, saving for non-essential purchases, and buying a new home, with percentages ranging from 21% to 4%.

Despite some financial difficulties, consumers faced high prices and rising credit card debt in 2021.

By lowering interest rates, the cost of holding debt may be reduced. The Federal Reserve reduced rates by one percentage point on Wednesday, marking the third time since September.

Those with high credit scores are still paying an average credit card interest rate of 20.35%, which is lower than the 20.79% rate seen in August, according to Mark Hamrick, senior economic analyst at Bankrate.

"If people accumulate debt without substantially paying it down, it could harm their personal finances. However, it's encouraging to see that people are recognizing debt as something they want to address in the upcoming year."

'The Fed isn't the cavalry coming to save you'

In order to reduce credit card balances and other debts, such as those from auto loans or other lines of credit, individuals must prioritize their finances.

A recent survey from Allianz Life Insurance Company of North America reveals that many Americans confess to having poor financial habits.

A significant portion of people admit to overspending on unnecessary items, not saving any money, only saving some, not paying down debt fast enough, and spending more than they earn.

The best way for debtors to pay off their balances is by taking charge, according to Matt Schulz, the chief credit analyst at LendingTree.

Despite the Fed lowering rates, the Fed is not the rescue team, according to Schulz.

New retirees may need to reconsider the 4% rule for their finances. There is a sense of urgency to act in order to achieve the best returns on cash, according to an expert. Last-minute moves can help reduce your 2024 tax bill.

LendingTree found that about 76% of people who requested a more competitive interest rate on their debt from their credit card company were successful in achieving it, according to Schulz.

"It's absolutely worth a call," he said.

Balance holders can look for 0% transfer offers to lock in a no-interest promotion for a set period, but fees may apply. Alternatively, they may opt for a personal loan to consolidate their debts at a lower rate.

While debtors prioritize paying off their balances, it's equally important to prioritize personal savings, according to experts. It's recommended to have at least three to six months' worth of living expenses saved up in case of an emergency, Shulz said. This provides a financial safety net for unexpected expenses such as car repairs or veterinary bills.

By prioritizing savings, it may take longer to reduce debt balances, but having savings can break the cycle of debt.