For Most Americans, Financial Success Now Means Being Debt-Free

Most Americans now define financial success as being debt-free, with recent surveys showing that about 74% of U.S. adults consider living without debt a core part of their financial goals in 2025. This trend has overtaken traditional milestones such as homeownership or marriage, reflecting growing concerns about financial stress and the rising cost of living.​

Debt-Free Living as the New Standard

Americans are recalibrating their approach to money: instead of focusing solely on increasing wealth, there is a marked shift toward achieving financial freedom through paying off and avoiding debt. This redefinition responds to economic pressures, with inflation pushing up the cost of essentials like housing and groceries by roughly 30% since 2020.​

Survey Highlights and Attitudes

• About three in four (74%) surveyed adults now see debt-free status as a symbol of financial success.​

• Financial stress is on the rise, with 68% of Americans feeling strained in 2025, up from 50% in 2024.​

• Only 39% of adults feel more successful financially than five years ago, mostly due to increased living expenses and persistent debt.​

• Generational differences exist, with younger people less confident about becoming debt-free but highly motivated to acquire budgeting and investing skills to reach this goal.​

Top Financial Priorities

Survey findings consistently show paying off debt is the top financial priority for 2025, ahead of saving for major purchases or retirement. Many Americans report that debt reduction not only lowers financial stress but also improves credit scores, further reinforcing its importance.​

Cultural Shifts

The concept of the American Dream itself is being reimagined. Debt-free living is now viewed as a critical element alongside other aspirations like quality health care, homeownership, and comfortable retirement. This marks a profound change, emphasizing stability and resilience over material accumulation.​

In essence, for most Americans in 2025, financial success is synonymous with being debt-free—a goal driven by changing economic realities and a collective desire for greater financial security.