Mr. Cooper Survey: A Third of Americans Would Rather Skip the Holidays Than Spend Money on Gifts
November 21 2017 - 8:00AM
Business Wire
Household debt is cited as a stressor during
the holiday season
Mr. Cooper®, the nation’s largest non-bank mortgage servicer,
today announced the results of a nationwide survey of 1,155
Americans showing that household debt and credit are key drivers of
stress during the holiday season.
Almost half of Americans are already in credit card debt and a
third said they “at least somewhat wished they could skip the
holiday season rather than spend money on gifts.”
“U.S. consumer debt is growing by half a trillion dollars each
year, and we are seeing the stress of debt take its toll on
Americans. Our data confirms that the debt crisis is an ongoing
issue,” said Jay Bray, Chairman and CEO of Nationstar Mortgage
Holdings, the holding company for the Mr. Cooper brand. “With home
equity at its highest levels since before the crisis, the home has
become the most important asset most consumers have. Our goal at
Mr. Cooper is to help our 3 million-plus customers better manage
that asset while also offering services, tools and education that
can support their personal balance sheets and financial health
goals.”
The survey, titled, “Holiday Hope: Don’t Let Debt Get you Down,”
was conducted by Mr. Cooper. It found that:
- Thirty-three percent of Americans at
least somewhat wished they could skip the holiday season rather
than spending money on gifts.
- Forty-six percent of Americans are in
credit card debt.
- When it comes to gift buying, 52
percent of Americans who purchase holiday gifts either won’t define
a budget this year, or will set a budget but have trouble sticking
to it.
- When it comes to paying for gifts, 32
percent of Americans who purchase holiday gifts will pay with
credit cards, three percent by taking out personal loans and two
percent will take out equity in their homes.
- In terms of resolving their holiday
debt burden, 21 percent of Americans who incurred credit card debt
last holiday season took six months or longer to pay it off.
Tips for Tackling Debt
As we head into the holiday shopping season, Mr. Cooper offers
the following three tips to help get ahead of debt:
- Build a budget: Managing
finances and paying off debt is easier with a clear budget plan for
the future. Assessing and tightly managing your overall financial
situation holistically – including a clear view of your total
expenses, assets and income – is the best way to approach debt
management.
- Consolidate your debts:
Consolidation gives you the ability to combine high-interest
balances with multiple monthly payments into one payment, ideally
with a lower interest rate. You may find you’re able to decrease
your overall monthly payment amounts.1 One way to consolidate
credit card debt is through a cash-out refinance on your mortgage,
which allows you to turn your home equity into cash. The cash could
then be used to pay off and consolidate your high-interest credit
card debt or to fund a large purchase or home improvement
project.
- Always be mindful of your interest
rates: Your credit card or existing mortgage interest rates may
be higher than you think. Take a deep dive into your statements to
understand what you’re really paying. You may want to consider
refinancing your mortgage to optimize your interest rate.
Mr. Cooper conducted this survey as a part of its overall
strategy to bring a customer-centric approach to the mortgage
industry and better understand and serve its customers. Mr. Cooper
is developing new technologies and processes to ensure its
customers are educated on how to best manage debt while also
optimizing their household finances, and ultimately making the
dream of homeownership more attainable for Americans. The brand
name Mr. Cooper is a key part of this customer-first strategy,
unveiled in August for the mortgage servicing and originations
operation of Nationstar Mortgage LLC. The Mr. Cooper brand is a
tangible expression of the company’s dedication to making the
mortgage process more rewarding for its more than 3 million
customers.
All figures, unless otherwise stated, are from YouGov PLC. Total
sample size was 1,155 adults. Fieldwork was undertaken between Nov.
1-2, 2017. The survey was carried out online. The figures have been
weighted and are representative of all US adults (aged 18+).
To learn more about Mr. Cooper’s transformation and
customer-focused initiatives, please visit www.mrcooper.com.
About Mr. Cooper
Mr. Cooper is the consumer brand for the forward mortgage
servicing and originations operation of Nationstar Mortgage LLC,
the operating company of Nationstar Mortgage Holdings Inc. (NYSE:
NSM). Based in Dallas, Texas, Mr. Cooper is one of the largest home
loan servicers in the country focused on delivering a variety of
servicing and lending products, services and technologies to make
the home loan process more rewarding and less worrisome. Please
visit www.mrcooper.com for the latest news and information.
1 It’s also important to know that by combining your short-term
debt into your long-term mortgage, while your monthly payment
obligations may be lowered, the finance charges that you pay over
the life of the mortgage will be higher.
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Mr. CooperChristen ReyengaMediaRelations@mrcooper.com
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