CHARLOTTE, N.C., Sept. 30, 2020 /PRNewswire/ -- Nearly 6 in
10 credit cardholders say they are better off financially today
than they expected to be when the pandemic began, according to a
new report from CompareCards, although there were stark differences
between responses from men and women.
Full
report: https://www.comparecards.com/blog/cardholders-better-off-financially-than-expected-pandemic/
Key findings
- Better off than expected: 57% of credit cardholders
agreed that they are better off now financially than they expected
to be when the pandemic began. Just 16% disagreed.
- All about the jobs: The two biggest reasons given for
being better off than expected were, "I was worried I'd lose my
job, but I didn't" (30%), and "I was furloughed but I've since been
brought back to work" (19%).
- Disappointed in government response: The most common
reason given for saying things were not better than expected was,
"I expected more help from the government" (27%). Second: "I lost
my job and haven't gotten a new one" (21%).
- Wide gender gap: Nearly 3 in 4 men agreed that they were
better off financially than they expected to be compared with just
4 in 10 women.
- Political party differences: Republicans were the most
likely to agree they are better off financially, while Independents
were the least, by a significant margin.
- Massive differences by age group: Generation Xers were
by far, the most likely to agree that they are better off today
than they expected to be when the pandemic began.
Better than expected for most Americans
- Cardholders were just over three-and-a-half times more likely
to agree that their financial situation was better off than
expected than they were to disagree (57% to 16%).
- That 57% number includes 33% who said they strongly agreed with
the statement. Conversely, just 6% strongly disagreed with the
statement.
Jobs and government response drove cardholder opinion
In the early days of the COVID-19 outbreak, it quickly became
clear that the pandemic wasn't just a health crisis, but an
economic crisis as well.
- Of the top five reasons given for feeling better off, the top
two revolved around jobs, while two others were about getting
financial assistance, either from the government or a friend or
relative. Just one concerned health.
- On the flip side, government assistance (or more specifically,
the lack thereof) was the primary reason for saying they didn't
feel they were better off, followed by losing a job and failing to
get another one.
- 18% of those who said they weren't better off chose "other
reason" when asked why and then wrote in their own reason. The most
common reasons included reduced hours and loss of income.
Huge differences in opinion by age, party and especially
gender
In today's highly polarized America, we expect to see stark
divides among different groups. This survey didn't disappoint.
- 72% of men agreed they are better than they expected vs. just
40% of women.
- 48% of men "strongly agree" they are better off than they
expected. Just 15% of women said the same.
- The biggest reason for women saying they're better off?
Economic impact payments allowing them to pay off
debt. Twenty-eight percent of women said so vs. 14% of
men.
- Generation X was far more likely than any other age group to
agree that they were better off than they expected to be, as were
those with higher incomes.
- Seven in 10 Republicans (70%) agreed, while just 40% of
Independents said the same, though the sample size of that group
was smaller than that of the two main parties.
The bottom line
This data clearly reveals that most Americans actually feel
better about their finances than they expected to when the pandemic
began. What is also clear is that the good feelings are not equally
spread among all Americans.
Some disparity in opinion among demographic groups is to be
expected. No one expects Republicans and Democrats to agree on much
of anything. Generation gaps have existed since the dawn of time,
as have differing opinions between the wealthy and the poor and, of
course, between the sexes.
"Despite the disparities, the big takeaway is that most
Americans do feel better about their finances than they expected to
back when the pandemic took hold," said Matt Schulz, Chief Credit Analyst at
LendingTree. "That is something to applaud. We just can't forget
that there's plenty of work to be done to ensure that the economic
good feelings are felt more widely across more diverse groups."
To view the full report and for more information, visit
https://www.comparecards.com/blog/cardholders-better-off-financially-than-expected-pandemic/
About LendingTree
LendingTree (NASDAQ: TREE) is
the nation's leading online marketplace that connects consumers
with the choices they need to be confident in their financial
decisions. LendingTree empowers consumers to shop for financial
services the same way they would shop for airline tickets or hotel
stays, comparing multiple offers from a nationwide network of over
500 partners in one simple search, and can choose the option that
best fits their financial needs. Services include mortgage loans,
mortgage refinances, auto loans, personal loans, business loans,
student refinances, credit cards and more. Through the My
LendingTree platform, consumers receive free credit scores, credit
monitoring and recommendations to improve credit health. My
LendingTree proactively compares consumers' credit accounts against
offers on our network, and notifies consumers when there is an
opportunity to save money. In short, LendingTree's purpose is to
help simplify financial decisions for life's meaningful moments
through choice, education and support. LendingTree, LLC is a
subsidiary of LendingTree, Inc. For more information, go to
www.lendingtree.com, dial 800-555-TREE, like our Facebook page
and/or follow us on Twitter @LendingTree.
About CompareCards:
CompareCards' mission is to help
people make smarter, more informed, healthier financial decisions
based on deeper knowledge of financial offers. Each month, over 2.9
million visitors come to CompareCards' website to independently
compare credit cards side-by-side and choose a credit card based on
interest rate, reward benefit, cost savings, and other factors that
are important to each person. CompareCards provides easy-to-use,
objective tools and educational resources that help people do
everything from making credit card comparisons to managing their
credit health. For more information, please visit
http://www.comparecards.com.
MEDIA CONTACT:
press@comparecards.com
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