According to a survey, many consumers will prioritize paying off debt in 2023.
According to the 2022 Money Trend Report from consumer finance app Cleo, 42% of respondents responded that paying off debt was their top priority in 2022 despite the challenging economic climate.
According to a recent survey, some Americans have managed to stick to their financial objectives this year despite inflation, cost increases, and recession fears.
According to the 2022 Money Trend Report from consumer finance app Cleo, 42% of respondents responded that paying off debt was their top priority in 2022 despite the difficult economic climate.
The second-highest goal, saving for the future, was listed as a critical priority by 23% of respondents. In comparison, 16% said saving for a significant purchase, such as a home or car, was their primary financial objective this year.
Seventy-four percent of respondents claimed that the cost of living rises impacted their spending plans for 2023. However, 36% of respondents stated they still intended to make debt repayment their priority in the coming year. In addition, for 26% of respondents, saving for the future remains a key priority, and 26% said they planned to prepare for a major purchase, like a home or car, in 2023.
According to Kimberly Dillon, vice president of brand at Cleo, “we saw that consumers are taking financial planning more seriously in Cleo’s Money Trend Report.” Younger consumers turned to be thrifty to save money, pay off debt, and save for the future. “Even with everything going on in the globe, there was an 86% increase in Gen Z who had made money objectives for 2023 over this last year,” said the study.
You can think about getting a personal loan to pay off debt at a reduced interest rate, which would cut your monthly payments if you are having trouble keeping up with increasing inflation.
ADULT CONCERNS THAT INFLATION IS CAUSING PARENTS’ RETIREMENTS TO BE SHORTFALL SEE HOME EQUITY AS A SOLUTION: SURVEY
Despite the federal repayment hold, many people continued to repay their other student loans.
Despite the suspension of federal student loan installments, survey participants said they still made payments on their other student debt. According to the report, each person made an average monthly repayment of $200.
In February 2023, the Supreme Court is scheduled to hear arguments in two challenges involving Biden’s plan to cancel student loans.
The Biden administration has, in the interim, once more put a halt on repayments, which were initially scheduled to start on January 1. To give the Supreme Court sufficient time to decide the issues during its term, student loan payments have now been suspended until June 30, 2023.
Payments will start again 60 days after the administration is permitted to carry out its plan to cancel student debt. If the plan is not implemented, payments will start up again 60 days after the deadline of June 30.
President Biden’s proposed student loan forgiveness program is in doubt after the 8th U.S. Circuit Court of Appeals extended a ban on the proposal as part of an ongoing lawsuit six states have launched against the Education Department.
Consider refinancing to a lower interest rate to minimize your monthly payments if you have private student loans that are not eligible for federal student loan forgiveness.
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How to reach your financial objectives in 2023
In 2023, 35% of respondents stated they intended to budget and use a savings app to reach their financial objectives. According to the survey, paying off debt and altering one’s attitude about money was equal for second place with 27% each.
Here are some additional suggestions to help you achieve your goals if you want to save money:
Paychecks are “set it and forget it” transactions.
Since most Americans receive their paychecks via direct deposit, Howard Dvorkin, chairman of Debt.com, advised making automated savings deposits a top priority.
If you never see the money in your bank account, you won’t be tempted to spend it, according to Dvorkin.
Look for ways to save on your health and home insurance.
Rick Nott, a senior wealth advisor at LourdMurray, claimed that there had been numerous changes to the home insurance industry in several locations. That increases the necessity of looking around for the best deal to maximize savings.
Nott claimed that the same holds when deciding on healthcare.
Consider when you have already spent money on medical expenses or anticipate doing so, and adjust your strategy as necessary, Nott advised.
The fact remains that it is difficult to save money in this situation.
As a general rule, Aleksandar Tomic, an associate professor at Boston College, said, “It boils down to either decreasing spending or raising revenue or both.” People should scrutinize their spending to determine what is required and what is not and eliminate any unnecessary costs, particularly recurring subscriptions that they no longer utilize.
Taking a debt consolidation loan to assist in paying off existing debt at a cheaper interest rate is another method you could save on your monthly expenditures.
