CHARLOTTE, N.C., Dec. 31, 2021 /PRNewswire/ -- The holiday
season can be a busy time for consumers, from making travel plans
to purchasing gifts for loved ones. For some Americans, this can
mean spending outside their budget by adding debt to their credit
card, using buy now, pay later financing or taking out personal
loans.
The newest LendingTree survey found that more than a third of
consumers (36%) incurred holiday debt this season, averaging
$1,249.
Key findings
- More consumers took on debt this holiday season than last,
though the average amount dropped year over year for the first time
since this survey began in 2015. 36% of Americans took on
holiday debt this season, up from 31% in 2020. But borrowers owe an
average of $1,249, down 10% from
$1,381 last season.
- Parents with children younger than 18 and millennials were
most likely to take on holiday debt, at 54% and 50%,
respectively. Both groups borrowed an average of $1,462.
- Nearly 40% of Americans used buy now, pay later financing
for holiday gifts this year. This is up slightly from 37% in
2020. This financing was most common among parents with young
children (64%), six-figure earners (61%) and millennials
(60%).
- Most holiday borrowers with debt put it on their credit
cards (62%). Personal loans also remained a popular choice at
23%, though this was down from 27% in 2020.
- 82% of those with holiday debt won't pay it off within a
month, but nearly 45% will try to consolidate their debt or open a
balance transfer credit card. That could be a helpful solution
for the 35% of borrowers paying above-average APRs.
"You can't make a meaningful plan to tackle debt unless you know
exactly how much money is coming in and going out of your household
on a regular basis," says Matt
Schulz, LendingTree's credit card expert. "Once you know
that, you can take stock in your spending and shift things around
to match your priorities, including freeing up money to pay down
debt."
To view the full report, visit:
https://www.lendingtree.com/personal/holiday-debt-survey.
Methodology
LendingTree commissioned Qualtrics to
conduct an online survey of 2,037 U.S. consumers from Dec. 14-20, 2021. The survey was administered
using a nonprobability-based sample, and quotas were used to ensure
the sample base represented the overall population. All responses
were reviewed by researchers for quality control.
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 loans, insurance, credit cards and more. Through the
LendingTree platform, consumers receive free credit scores, credit
monitoring and recommendations to improve credit health.
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
MEDIA CONTACT:
Morgan
Lanier
morgan@lendingtreenews.com
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SOURCE LendingTree