Most U.S. adults are on top of managing their debt, but those with debt believe it is standing in the way of realizing their financial goals, according to a new survey by insurer New York Life. The company recently polled 4,400 people about their debt management and investment strategies. Sixty-six percent of respondents reported they are currently in debt, with credit card (46%), mortgage/home loan (23%) and automobile (22%) debt being the most common. Respondents were contributing an average of $732.91 a month to pay down debt. Among those with debt, 58% said their debts are preventing them from reaching their financial goals, and 56% said that they are nervous about paying their debts in the current environment.
The survey also found recent market changes and inflation were affecting people’s investment strategies. Three in 10 respondents who have money invested said they made changes to their investment portfolio in the past six months. Among those who have made changes, 37% have moved more money into cash, followed by individual stocks (26%) and cryptocurrency (21%). The changes were made because of a reaction to the stock market (35%), an increase or decrease in the level of investment risk (33%) and the costs of goods and services rising due to inflation (28%). Respondents looked primarily to their families for financial guidance (31%), followed by news sources (23%) and financial advisers (22%).
