Written by: Eric Bank
Edited by: Lillian Guevara-Castro
Reviewed by: Adam West
Key Takeaways
- Eighty-four percent of Americans surveyed wish to enhance their financial well-being, but 41% are not clear about how.
- Two out of 3 survey respondents said they have moderate to extreme financial stress, and 70% are unable to afford a $2,500 emergency.
- Most are still wary of personal loans, even though they can alleviate expensive debt with help from the industry.
Americans are feeling pinched. Discover’s latest Personal Loans Survey found what it describes as persistent broad-based financial stress and low preparedness among American consumers.
Even amid inflation and uncertainty, though, an overwhelming majority of consumers in the survey remain optimistic about building improved financial futures.
Over two-thirds of those polled report experiencing moderate to high financial stress. Fifty percent report that they would not be prepared for surprise expenses, and 44% said they are in debt in some capacity.
Despite these conditions, 84% of those surveyed report that they want improved finances in 2025. The catch? Too often, they are not certain where to begin.
The survey paints a bleak picture: Private debt is as much of an emotional hurdle as it is a financial one. Fifty-two percent of those surveyed admit they’ve lost some sleep over unpaid balances, and 58% said they fear they can’t ever pay off debt.
Both emotional overload and practical impediments suggest that addressing debt in America is more about mindset than math.
Financial Pressures are Building
Cost-of-living increases are still putting pressure on household budgets.
Americans are anticipating spending the most on groceries, housing, health care, and debt reduction in 2025. In each of these categories, most anticipate higher expenditures in 2025, and a large majority expect increases of 6% or more.
| CATEGORY | TOP SPENDING IN 2025 | EXPECT COST TO RISE | EXPECT SIGNIFICANT INCREASE (6%+) |
|---|---|---|---|
| Groceries | 70% | 67% | 45% |
| Housing | 49% | 54% | 30% |
| Healthcare | 30% | 67% | 39% |
| Debt Repayment | 29% | 50% | 27% |
| Transportation | 26% | 53% | 29% |
Aside from increased expense, debt continues to weigh heavily on people. Of the respondents who said they are in debt, 84% indicate inflation makes it more difficult to pay. Even though 83% think budgeting is helpful, only 44% have created a budget for 2025.
Misconceptions About Personal Loans
Personal loans can come in handy when consolidating high-interest credit debt or covering unexpected expenses. Yet, Americans remain apprehensive.
Though 53% of those surveyed said they see personal loans as being helpful in some circumstances, 65% think they can only be considered if everything else has been exhausted.
Areas of concern about personal loans are high interest rates (62%), qualification issues (55%), and the belief that loans are collateral-based (54%). Almost half of people surveyed said they feel the process is complicated or fear that it would harm their credit score.
These myths may lead consumers to altogether avoid seeking out alternatives that can help.
In practice, most lenders offer streamlined applications, soft credit checks, and open repayment schedules. Without enhanced financial literacy or enhanced outreach efforts, these alternatives are not received by those who are most in need.
Goal-Setting Amid Uncertainty
Despite overall stress, Americans are still creating financial goals for 2025. Forty-five percent of people in the study said they set resolutions for financial improvement, and 81% of those have made some progress. The following are common actions:
- Creating a budget (36%)
- Decreasing discretionary expenditures (31%)
- Investing (35%)
- Saving toward an emergency fund (26%)
- Increased earnings (25%)
- Pay off or consolidate high-interest debt (24%)
Discover Personal Loans’ Vice President Dan Nickele said, “I’m inspired that Americans are motivated to seek a brighter financial future, and that many are making or searching for a game plan to achieve their financial goals.”
Implications for the Lending Industry
The numbers herald a clear opportunity for lenders, credit counselors, and fintech platforms. Consumers prefer making smarter choices but need guidance or confidence.
Educational campaigns, streamlined lending processes, and transparent fees can help consumers overcome barriers.
Financial institutions that respond with compassion, simplicity, and useful tools can encourage more interaction from struggling borrowers. With ongoing inflationary pressure, reliable advice and affordable products can be what creates sustainable loyalty.
This is not a product marketing moment only — it’s a leadership moment. Lenders who come forward in a transparent and proactive manner can create connections with consumers for long-term financial health rather than short-term deals.
