4 factors that could affect your debt — and what you can do
By Lauren Schwahn, NerdWallet
Reducing debt is Americans’ top financial priority for 2025. That’s according to the CFP Board of Standard’s Debt and New Year’s Resolutions Report.
It’s an understandable goal: Household debt is at an all-time high, delinquencies are rising and policy changes under a new presidential administration are adding to financial uncertainty for many consumers.
“The question then is, what conditions are going to exist in the economy that make it either easy or difficult for them to turn things around?” says Bruce McClary, senior vice president of membership and communications at the National Foundation for Credit Counseling.
We asked experts to share what could have the biggest impact on people’s debt loads in the coming months, and strategies you can use to pay off debt.
1. Tariffs
President Donald Trump imposed new tariffs on Mexico, Canada and China earlier this year. Since then, some countries have announced retaliatory tariffs on U.S. goods, and certain tariffs have been paused. While the updates may be dizzying, prepare for rising prices across various goods and services.