CHARLOTTE, N.C., Jan. 10, 2018 /PRNewswire/ -- LendingTree®,
the nation's leading online loan marketplace, recently conducted an
online survey among 1,025 Americans to gauge financial
expectations, concerns and overall sentiment regarding personal
finances for 2018. According to the results, two out of three
Americans have an optimistic outlook for the year ahead, with
millennials being even more optimistic.
Looking back on 2017
According to the survey, almost half of Americans (45%)
feel that 2017 was at least somewhat better than 2016 in terms of
personal finances. Approximately one third (34%) earned more in
2017 than they did in 2016, 24 percent put more into savings in
2017 compared to 2016, and 21 percent improved their score over the
past 12 months. However, only 16 percent reduced their total credit
card debt, making debt reduction a priority in the year
ahead.
Optimism in 2018
The survey found Americans generally have an optimistic outlook
for 2018, with 67 percent expecting personal finances to improve
over the next 12 months. Fewer than 10 percent of respondents said
they expected their finances to worsen in the year ahead. Today's
economic indicators could be contributing to the positive outlook,
with jobless rates at a 17-year low, home prices steadily climbing
in most markets and stocks continuing to rally.
Millennials (aged 35 and under) were the most optimistic
demographic. A full 79 percent expect their finances to improve
this year. In contrast, only 55 percent of those older than 50 said
they expect their finances to improve. There weren't many
differences in optimism between the sexes: men were only slightly
more pessimistic about their financial prospects than women.
Additional positive expectations for 2018 include:
- 46% expect income to increase
- 28% expect to pay off credit card debt
- 35% plan to make and/or stick to a budget in 2018
- 35% also expect to improve their credit score
- 18% expect to save for a down payment on a house
- 27% plan to build an emergency fund
- 26% expect to save for a savings/purchase goal
Making changes in 2018
The survey found that many people are planning on making some
changes that may affect personal finances in 2018. Twenty-seven
percent of respondents expect to purchase a new car in 2018. This
was followed by 23 percent who plan to move or relocate sometime
this year, 20 percent who expect to switch jobs and 13 percent who
believe they'll become homeowners in 2018.
Financial concerns still loom
A sunny outlook for 2018 finances doesn't come without at least
some financial concerns. Americans feel most uneasy about
unexpected expenses (43%), followed by their ability to make ends
meet (34%), which may be why 27 percent are hoping to build an
emergency fund and 26 percent are hoping to put more into savings
in 2018. Healthcare costs come in third place with 29 percent,
although healthcare expenses ranked second (40%) for those over age
50.
The 35-and-under crowd echo the financial concerns of other
generations, with 39 percent of millennials stressing about
unexpected expenses and 30 percent worrying about their ability to
make ends meet.
Home prices expected to rise
When asked about what they thought would happen to house prices
and rental where they currently live, more respondents expect home
prices to rise, as opposed to remaining level or falling. The
percentages were similar no matter the respondents' age or gender.
Only 10 percent of respondents expect home prices to fall.
Separately, when asked what they were most optimistic about in
2018, only 8 percent of respondents said they were optimistic about
home prices rising. But another 5 percent – prospective homebuyers,
perhaps — said they were looking forward to home prices
falling.
Paying off debt
Debt reduction is a priority for many Americans, with 36 percent of
survey respondents saying they'd use a $10,000 unexpected windfall to pay down debt. For
contrast, 14 percent would invest the money, 13 percent would spend
the money on family and 10 percent would use those funds for home
improvement projects.
Despite some uncertainty about the specifics, Americans
expressed that paying off debt was the financial matter they were
most confident about accomplishing in 2018, outpacing that of
controlling spending and increasing income. Thirty-one percent said
they were confident they would pay off debt this upcoming year,
followed by 27 percent who were confident they would reign in
unnecessary spending and 19% who felt confident about receiving a
raise. Most people chose the financial concerns they have the most
control over (like controlling spending and paying down debt) than
more economic matters that were largely out of their control (like
home prices and financial market performances).
Debt consolidation on the mind of many, but methods
unclear
When asked if they thought they might consolidate the debts this
year, 13 percent of Americans were considering debt
consolidation.
But when those 13 percent were asked if they knew where they
would obtain the financing for the debt consolidation, most
respondents didn't know. Only 40 percent of those looking to
consolidate their debt knew where they would go to accomplish that
task (the most popular choice was going to a bank or credit
union).
To view the rest of the survey results, visit
https://www.lendingtree.com/finance/resolutions-and-goals-2018/.
Methodology
LendingTree surveyed more than 1,000 Americans on their financial
goals and sentiments in December
2017, and commissioned Qualtrics to administer the survey on
December 26-30, 2017.
About LendingTree
LendingTree (NASDAQ: TREE) is the
nation's leading online loan marketplace, empowering consumers as
they comparison-shop across a full suite of loan and credit-based
offerings. LendingTree provides an online marketplace which
connects consumers with multiple lenders that compete for their
business, as well as an array of online tools and information to
help consumers find the best loan. Since inception, LendingTree has
facilitated more than 65 million loan requests. LendingTree
provides free monthly credit scores through My LendingTree and
access to its network of over 500 lenders offering home loans,
personal loans, credit cards, student loans, business loans, home
equity loans/lines of credit, auto loans and more. 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.
MEDIA CONTACT:
Megan Greuling
704-943-8208
Megan.greuling@lendingtree.com
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SOURCE LendingTree