Americans lost an average of almost $1,000 to financial errors in 2025. 3 big money mistakes to leave behind this year

A balance transfer might be a way to get some breathing space on a debt that has been carried over month to month for a while: transferring your balance to a card offering an introductory 0% rate could buy you some time to pay down your balance.

Read More: The average net worth of Americans is a surprising $620,654. But it almost means nothing. Here’s the number that counts (and how to make it skyrocket)

Overdraft protection can be more expensive than most Americans realize. Among retail banks, the median fee for overdrawing a debit card is $34, according to the CFPB, and most of these fees are on transactions of $24 or less (6). All together, the CFPB estimates that consumers spend $17 billion on overdraft and non-sufficient funds (NSF) fees (1).

The simplest way to avoid overdraft fees is to regularly monitor your account balance and keep a buffer to cover upcoming transactions.

Seeking a fee waiver sometimes meets with success, particularly as a courtesy on the first overdraft charge (7).

There are several ways to reduce the risk of getting dinged with an overdraft charge, like setting low-balance alerts or agreeing to automatic transfers from other accounts. Although overdraft protection prevents your transactions from being declined, the fees add up fast, and can quietly drain your account. Opting out eliminates that risk.

We know Americans are far too quick to whip out their credit cards, but what are they spending all that money on? Well, in part, it’s things they definitely don’t need.

The U.S. luxury goods market was worth $115.22 billion in 2024 (8), and American consumers were responsible for approximately 21% of global luxury revenue (9).

According to a 2024 LoopMe survey, 70% of U.S. consumers report purchasing luxury goods or apparel each year, and a third of those consumers say they spend at least $1,000 on premium goods annually (10).

Almost one in three (31%) luxury shoppers polled by YouGov in 2024 said they planned to spend more on high-end purchases in the year to come than in the past year (11). In a different survey, almost three quarters (72.6%) of luxury shoppers said they plan to maintain or increase their luxury spending (12).

While splurging occasionally in the context of a broader budget can be a good way to mark a special occasion or acquire an investment piece, purchasing premium goods with credit is a recipe for snowballing debt.

Experts recommend treating this kind of high-ticket discretionary spending differently from spending on necessities: pay for optional purchases with fun money set aside for the purpose and within clear limits (13).

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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

National Financial Educators Council (1); Consumer Financial Protection Bureau (2); Federal Reserve Bank of St. Louis (3); Federal Reserve Bank of St. Louis (4); LendingTree (5); Consumer Financial Protection Bureau (6); Consumer Financial Protection Bureau (7); Research & Markets (8); Bank of America (9); Loopme (10); YouGov (11); eMarketer (12); Ramsey Solutions (13)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.