The 2025 Credit Check-In by Happy Money®

Overview: Why This Report Matters

Across the country, Americans are managing over $1 trillion of credit card debt – and many are also navigating financial stress and emotional strain in light of high-interest debt.

The Credit Check-In, a new study from Happy Money, uncovers how Americans are feeling about their finances, what actions they're taking to manage debt, and where they may be missing opportunities to lighten the burden of credit card debt and build momentum toward their financial goals.

Executive Summary

The 2025 Credit Check-In Report by Happy Money reveals how Americans are navigating rising credit card debt and financial stress. Drawing from a national survey of 2,000 U.S. adults, the report highlights key financial behaviors, identifies missed opportunities in debt management strategies, and explores how tools like personal loans can improve financial outcomes.

Designed for both consumers and the financial institutions that serve them, this report offers a data-backed look at credit behavior trends and practical solutions for the year ahead.

Key Findings: Financial Stress, Debt Behavior & Consumer Inaction

• 42% of respondents say they are concerned about their credit card payments.
• 42% of those say that concern has affected their mental health, and 34% say it's impacted their sleep.
• Paying down debt is one of people's top three financial goals; 36% cited it as a top goal.
• Yet, 21% of respondents have taken no steps to manage debt or reduce financial stress in the past six months.
• Only 8% have consolidated or refinanced their debt in the past six months.

The findings reveal a clear gap between people's financial goals and the actions they're taking – revealing an opportunity to provide strategic financial tools and guidance to help them make progress.

This report explores what strategies people are using today and how structured financial solutions like personal loans can help consumers reduce stress and build confidence in their credit journey.

The Mental & Emotional Cost of Credit Card Stress

Our survey found that credit card debt is affecting more than just bank accounts and household balance sheets. Of the 42% of respondents who report concern over their credit card payments, nearly half (42%) say this concern has had a direct impact on their mental health, and over a third (34%) say it has disrupted their sleep.

For many people, the impact of credit card debt is not just about the amount they owe. It's about the complexity of juggling multiple balances with different interest rates and payment dates. It can feel overwhelming to figure out the fastest path forward to paying off this debt.

It's no wonder credit card stress is affecting day-to-day realities like work performance and family dynamics. This reality underscores the need for financial tools that support consumers' efforts to reduce high-interest debt.

"The Credit Check-In confirms what broader economic data has shown: many Americans are feeling the strain of a high cost of living and are cutting back, delaying major purchases, and relying on credit to manage expenses." — Matt Potere, CEO of Happy Money

The Challenge of Managing Revolving Credit Balances

Many Americans report carrying a balance month to month – a pattern that can make it harder to pay down debt. Our survey found that 37% of people carry a credit card balance every month, and that number rises to 45% for those aged 35–44 and 44% for those aged 45–54.

Credit cards can offer cashflow flexibility, convenience, and a way to build credit history. But when balances carry over from month to month, the interest can add up quickly, turning short-term borrowing into a longer-term challenge – especially with average credit card APRs sitting above 20%.

While many respondents expressed an intention to pay down credit card debt, some are not confident about the best way to achieve that goal. We asked what people’s financial goals are right now, and their top three are:

• Covering daily expenses: 42%
• Generally building savings: 40%
• Paying down debt: 36%

Debt Actions & Gaps: Why Some Strategies Fall Short

Even though many Americans feel pressure from credit card debt, just 8% of respondents consolidated or refinanced their debt in the past six months – a potential missed opportunity to save significantly on interest and simplify repayment. See below for an example of how much a personal loan could save compared to chipping away at high-interest credit card payments.

This finding is especially striking: 21% of respondents have taken no action at all to manage debt or reduce financial stress in the past six months – despite the reported mental and emotional stress of concern over credit card payments. Among those who are taking steps, many are relying on short-term tactics like delaying purchases or trimming expenses which don't always address the root issue: high-interest credit card debt.

Moreover, some strategies may help in one area but limit progress elsewhere. For example, 21% report using savings to pay down debt, which works toward their goal of debt reduction but may make it harder to build savings or an emergency fund.

Most notably, few are using tools like debt consolidation or structured repayment plans which can offer fixed payments, lower interest rates, and clear payoff timelines to help people repay debt more confidently and affordably.

"Creditworthy consumers may be overlooking responsible borrowing opportunities to reduce high-interest debt faster and more affordably – such as through a fixed-rate personal loan." — Matt Potere, CEO of Happy Money

Tools to Support Financial Progress

A smart financial plan uses the right tools for the job, helping people make meaningful progress toward their goals. Many Americans are taking prudent steps like budgeting and saving, but they might be overlooking additional solutions that can improve their balance sheet health and reduce financial stress.

Budgeting & Planning

Building and updating a clear monthly budget is the foundation for smart money decisions. It's important to support your budget with wise financial strategies so you feel confident in sticking to your goals.

Home Equity Lines of Credit (HELOCs)

For homeowners with equity, HELOCs can help fund large expenses like education or home improvements. They often offer lower interest rates for major planned expenses but should be used for long-term value, not short-term relief.

Buy Now, Pay Later (BNPL)

BNPL has become popular for its payment flexibility but can be difficult to track and may soon impact credit scores. While once seen as an alternative to credit cards, BNPL can create budgeting challenges, especially if repayment schedules overlap.

Negotiating with Creditors

Many consumers may not know they can contact creditors to discuss lower rates or extended terms. You may also be able to work with creditors directly to settle debts for less than the full amount owed, but be aware that this can negatively impact your credit score.

Personal Loans for Debt Consolidation

Fixed-rate personal loans can help consumers reduce revolving debt faster, regain control of payments, and lower total interest costs. With fixed payments, lower interest rates, and a defined payoff timeline, personal loans can ease both financial and emotional stress.

How Smart Borrowing Can Support Faster Financial Progress

Many Americans are trying to cut back, delay expenses, or even dip into savings to stay on top of their financial obligations. Rather than relying solely on these strategies, responsible borrowing may give consumers a faster, clearer path to financial relief without hindering other goals. Specifically, personal loans offer a simplified and transparent way to reduce high-interest credit card debt – with fixed terms, one monthly payment and a clear payoff date.

Consider This Scenario: Credit Card Debt vs. Personal Loan

Debt consolidation can save you time and money in the long run. For instance, consolidating $20,000 of credit card debt at 24% APR into a personal loan at 16% APR could save over $7,000 in interest and shorten repayment time by nearly a year.

Moreover, debt consolidation through a personal loan can help you feel more confident and in control of your finances by having a clear plan: one payment, one interest rate, and one defined payoff date. That should be welcome news given that 21% of respondents said they're not confident in their ability to meet their financial obligations over the next six months. The fixed, predictable monthly payments that personal loans offer can help increase consumer confidence and give back a sense of stability and control.

*Rates, terms and savings vary based on credit score and other factors. We used NerdWallet's debt consolidation calculator to estimate savings. Key assumptions: a starting balance/loan amount of $20,000; credit card APR of 24% and $580 monthly payment; loan APR of 16% with a 4-year term and $567 monthly payment. Interest saved is over $7,000. Scenario is for example purposes only.

How Financial Institutions Can Close the Gap

Trusted financial institutions have an opportunity to support consumer well-being by providing guidance and responsible credit solutions designed to help people manage debt and reduce stress. By offering well-structured personal loans, credit unions and banks can:

• Support their members' top financial goals
• Build trust and long-term loyalty
• Diversify their portfolios with high-quality, short-duration assets

Smart, transparent personal loans are a win-win for institutions and the people they serve – helping Americans reduce debt and financial stress while optimizing portfolio performance.

"Financial institutions that offer responsible credit solutions such as personal loans are well positioned to attract new customers and strengthen existing relationships." — Matt Potere, CEO, Happy Money

With the right partner, financial institutions can originate high-quality loans, diversify their balance sheets, and grow responsibly by offering financial solutions that are:

• Transparent and easy to understand
• Structured for predictability
• Designed to reduce financial stress

Takeaway for Lending Leaders

A well-structured personal loan can reduce portfolio risk, increase member loyalty, and unlock long-term growth – especially when it's delivered through a trusted partner.

Learn about partnering with Happy Money →

Looking for a Smarter Way to Pay Down Credit Card Debt?

Happy Money helps you consolidate high-interest credit card debt through a fixed-rate personal loan – so you can simplify payments, reduce financial stress, and make progress toward your goals.

• Lower interest rates than most credit cards 
• One fixed monthly payment and a clear payoff date 
• Designed to support you and your financial goals

Check your rate with no impact to your credit →

About Happy Money

Happy Money is a consumer finance company that empowers people to achieve their goals through responsible lending. Our loans are built with transparency and ease in mind, giving you more time to do what you love. We save you money with low interest rates and a simple monthly payment schedule. By partnering with credit unions and other trusted financial institutions, we prioritize members’ best interests and work together to offer personal loans with lower rates, no hidden fees, and a clear path to payoff. 

Together with our capital partner network, Happy Money has originated over $6 billion in loans representing more than 300,000 people who have taken greater control of their financial futures. Learn more at happymoney.com. 

About The Report: 2025 Credit Check-In Methodology

The 2025 Credit Check-In Report is part of Happy Money's broader effort to bring timely, actionable insights to consumers and financial partners.

This online survey of 2,000 US adults (nationally representative on age, gender and region) was commissioned by Happy Money and conducted by market research company OnePoll, in accordance with the Market Research Society's code of conduct. Data was collected between June 26 and July 9, 2025. All participants are double-opted in to take part in research and are paid an amount depending on the length and complexity of the survey. This survey was overseen and edited by the OnePoll research team. OnePoll are MRS Company Partners, corporate membership of ESOMAR and Members of the British Polling Council.

Download the full report →

Frequently Asked Questions (FAQ)

What is the 2025 Credit Check-In Report by Happy Money?

The 2025 Credit Check-In is a national study commissioned by Happy Money to explore how Americans are managing credit card debt and financial stress. The report shares key findings from a representative survey of 2,000 U.S. adults and offers insights into debt behavior, personal loan trends, and opportunities for financial institutions to better support consumers' goals.

How are Americans managing credit card debt in 2025?

According to the 2025 Credit Check-In, many Americans are struggling with credit card debt. While 42% are concerned about their payments, only 8% have used tools like debt consolidation or personal loans to manage it more effectively.

What is the mental and emotional impact of credit card debt?

The report found that 42% of those worried about their credit card payments say the stress has affected their mental health, and 34% say it has disrupted their sleep – underscoring the emotional toll of revolving credit.

What actions are people taking to reduce financial stress?

Most consumers are relying on short-term strategies like delaying purchases or using savings. Only a small percentage have taken strategic actions like refinancing or consolidating debt, according to Happy Money's 2025 Credit Check-In.

Why are personal loans a smart option for debt consolidation?

Fixed-rate personal loans can reduce total interest paid, offer predictable monthly payments, and help borrowers pay off credit card debt faster – making them a smarter solution for many consumers.

How do personal loans compare to credit card payments?

The report outlines a scenario where consolidating $20,000 of credit card debt at 24% APR into a personal loan at 16% APR could save over $7,000 in interest and shorten repayment time by nearly a year.

What are the top financial goals for Americans right now?

The top three goals identified in the report are:

1. Covering daily expenses
2. Building savings
3. Paying down debt

How can financial institutions support consumers more effectively?

The report suggests that financial institutions like credit unions and banks can close the gap and help consumers pursue their goals with greater confidence by offering responsible personal loan products that address both the financial and emotional burdens of debt.

What is Happy Money's role in helping reduce credit card debt?

Happy Money offers fixed-rate personal loans that help consumers consolidate high-interest credit card balances, simplify payments, and make meaningful progress toward their financial goals.

Where can I download the full 2025 Credit Check-In Report?

You can download the full report here.