The 25% prioritizing debt payoff (survival mode)Those caught between debt and savings (paralysis)People in financial triage wondering "what first?"Financial advisors helping struggling clients

Financial stress is a growing reality for many households. According to the Motley Fool November 2025 report, 25% of people prioritize debt payoff, while only 9% focus on retirement savings. This gap highlights a widening divide between those struggling to survive financially and those planning for the future. Understanding this divide and how to navigate it can help individuals make clearer decisions about managing debt and building savings.

The Rising Financial Pressure and Its Impact

Rising living costs have pushed many into what experts call "survival mode" finances. This means a significant portion of people are focused on meeting immediate expenses rather than long-term goals. The Motley Fool November 2025 data shows that 37% of those prioritizing debt are specifically targeting credit card debt, which often carries the highest interest rates. This focus makes sense because high-interest debt can quickly spiral out of control, making it harder to regain financial stability.

At the same time, 10% of people have abandoned their 2025 financial goals due to these rising costs. This is not a personal failure but a systemic issue affecting many households. The divide between the "planning" class, who can save and invest, and the "surviving" class, who are caught in debt and daily expenses, is growing wider.

Understanding the Divide: Planning vs Surviving

The financial divide can be seen as two distinct groups:

• The Planning Class: These individuals have enough financial breathing room to prioritize savings, retirement, and investments. They focus on building wealth over time and often have emergency funds in place.

• The Surviving Class: This group is primarily focused on paying off debt and covering essential expenses. They often feel stuck in a cycle of debt, especially credit card balances, and have little to no savings.

  
  

This divide creates different financial priorities and challenges. For those in survival mode, the question is often, "What should I tackle first: debt or savings?" The answer depends on individual circumstances but understanding the broader trends can help clarify the best approach.

Why Prioritize Debt Payoff?

For many, especially those with high-interest credit card debt, paying off debt first is the most practical step. The Motley Fool November 2025 report highlights that 37% of people focusing on debt are targeting credit card balances. This strategy reduces the amount paid in interest and frees up money for other financial goals.

Benefits of prioritizing debt payoff:

• Reduces financial stress by lowering monthly obligations

• Improves credit score, which can lead to better loan terms

• Frees up cash flow for future savings or investments

• Prevents debt from growing due to high interest rates

  
  

For example, if someone has $5,000 in credit card debt at 20% interest, paying it off quickly saves hundreds or even thousands in interest payments. This can be more beneficial than putting money into a low-yield savings account.

Why Savings Still Matter

While debt payoff is critical, neglecting savings can leave people vulnerable to emergencies. The Motley Fool November 2025 data shows only 9% prioritize retirement savings, which is concerning given the importance of long-term financial security.

Reasons to maintain savings even while paying off debt:

• Emergency fund to cover unexpected expenses like medical bills or car repairs

• Avoids adding new debt when emergencies arise

• Builds a foundation for future financial goals, including retirement

  
  

A practical approach is to build a small emergency fund (e.g., $1,000) while aggressively paying down high-interest debt. Once debt is under control, savings can increase.

Finding Balance: What to Do When Caught Between Debt and Savings

Many people feel stuck between paying off debt and saving, unsure which to prioritize. This paralysis can lead to inaction, worsening financial stress. Here are some practical steps:

• Assess your interest rates: Focus on paying off debts with the highest interest first, usually credit cards.

• Build a starter emergency fund: Save a small amount to cover urgent expenses and avoid new debt.

• Set realistic goals: Adjust your 2025 financial goals if needed, recognizing that rising costs have forced many to change plans.

• Create a budget: Track income and expenses to find areas to cut back and free up money for debt or savings.

• Seek professional advice: Financial advisors can help tailor a plan that fits your unique situation.

  
  

How Financial Advisors Can Help Clients in Survival Mode

Financial advisors working with clients caught in this divide face unique challenges. Many clients are overwhelmed by debt and unsure how to start saving. Advisors can:

• Help clients prioritize high-interest debt payoff while maintaining a small emergency fund

• Educate clients on the importance of balancing short-term survival with long-term planning

• Develop step-by-step plans that adjust as clients’ financial situations improve

• Provide emotional support and encouragement to reduce financial anxiety

  
  

By understanding the divide highlighted in the Motley Fool November 2025 report, advisors can better guide clients through financial triage toward stability and growth.

Moving Forward Amid Financial Challenges

The widening gap between those prioritizing debt payoff and those focusing on savings reflects broader economic pressures. Rising costs have pushed many into survival mode, with 10% abandoning their 2025 goals due to systemic financial challenges. Recognizing this reality helps remove blame and encourages practical, compassionate solutions.

For individuals caught in this divide, the key is to take manageable steps toward reducing debt while building some savings. For those with more financial flexibility, continuing to save and invest remains crucial. Everyone’s path will look different, but understanding the divide and the reasons behind it can lead to clearer choices and better outcomes.