Most Americans Now Say Financial Success Means No Debt

Financial success for many Americans is now defined by being debt-free, according to a recent survey by KeyBank. The survey, which polled over 1,000 U.S. adults, found that 74% of respondents consider being debt-free a key component of financial success. This shift in mindset indicates a changing financial landscape where wealth alone is no longer the sole measure of success.

Daniel Brown, an executive vice president at KeyBank, highlighted the importance of living debt-free and preparing for the future. He emphasized that financial success is not just about accumulating wealth but also about managing debt effectively.

The survey also revealed that Americans are experiencing increased financial stress compared to the previous year, with 68% of respondents reporting financial stress in 2025, up from 50% in 2024. Feelings of financial success have also diminished, with only 39% of adults feeling more financially successful than they did five years ago. Rising costs of living, particularly in food and housing, as well as credit card debt, were cited as major sources of financial strain.

The cost of living has surged by around 26% since the beginning of 2020, according to data from the Department of Labor, with grocery and housing costs increasing by approximately 30%. Household debt in the U.S. has reached $18.6 trillion, with $1.2 trillion attributed to credit card debt alone, according to the Federal Reserve Bank of New York.

When it comes to managing debt, it’s important to differentiate between “good debt” and “bad debt.” Good debt, such as a mortgage, can increase net worth and provide future value, while bad debt, like payday loans or high credit card balances, can be detrimental to financial health.

To eliminate debt effectively, individuals should create a detailed debt log that includes all owed amounts, monthly payments, and APRs. Prioritizing debt repayment can be done through strategies like the debt snowball method, which focuses on paying off debts with the lowest balance first, or the debt avalanche method, which targets debts with the highest APR.

Debt consolidation may also be a viable option for simplifying multiple debts into one monthly payment or securing a lower interest rate. Adjusting budgets to accommodate extra debt payments and staying motivated are key to achieving debt-free goals and improving overall financial well-being.