5 Steps To Overcome Financial Overwhelm and Boost Your Confidence
A recent study by BadCredit.org found that 90% of Americans report gaps in financial knowledge, and 52% feel overwhelmed by the sheer volume of advice. The issue isn't that people don't want to learn, it's overload.
Erica Sandberg, consumer finance expert at BadCredit.org, pointed out that language is part of the problem, with terms like 'financial literacy' feeling inaccessible to many.
'Not knowing how to manage money or use credit effectively doesn't mean you're illiterate,' she said. 'Just that you don't have the information or tools yet.'
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The study backs this up, with 60% of respondents saying they would engage more with programs using 'financial confidence' over 'financial literacy,' favoring simpler, more actionable language.
For people who feel overwhelmed and unsure where to start, here are five ways to help build financial clarity and confidence.
Instead of trying to tackle everything at once, start with the area that causes the most stress — whether that's credit card debt, budgeting or saving — to reduce the pressure. Breaking down the bigger picture into smaller, manageable chunks makes it easier to make a start and then stay focused.
Forty-nine percent of Americans turn to family or friends for financial guidance, with only 37% consulting financial professionals, per BadCredit.org. While it can definitely be useful to get support and advice from loved ones, expert guidance can add clarity to complex financial situations.
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'Everyone makes mistakes,' said Sandberg. 'So don't be too hard on yourself when you make them — just assess what you did and make a commitment to change.'
What matters most is what happens after something goes wrong. Recognizing the issue, understanding what led to it and using that insight to move forward with a clearer plan is what builds lasting financial confidence.
One of the fastest ways to reduce financial stress is taking control of debt with a consistent, realistic plan. U.S. household debt rose by 167 billion to $18.20 trillion in Q1 2025, according to the Federal Reserve of New York, and for many, it's a major source of anxiety.
Rather than switching between conflicting advice or chasing quick fixes, it helps to commit to a strategy that fits the current financial situation. Progress may be gradual, but consistency builds momentum and relieves stress over time.
Financial education shouldn't start in crisis mode, and starting early helps build habits major decisions come up. For those already managing debt or struggling, it's not too late; they can start with practical, everyday skills and expand from there.
'You really do have power over your money, not the other way around,' Sandberg explained. 'Earning, saving, spending, investing, borrowing and repaying are all under your control.'
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Sources
BadCredit.org, 'Why 90% of Americans Feel Financially Lost–And a Simple Fix That Could Help.'
BadCredit.org, 'Erica Sandberg.'
Federal Reserve Bank of New York, 'Household Debt and Credit Report (Q1 2025).'
This article originally appeared on GOBankingRates.com: 5 Steps To Overcome Financial Overwhelm and Boost Your Confidence
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