Some Debtors Expect to Take 5+ Months to Pay
It Off, Up 28% from Last Year
CHARLOTTE, N.C., Dec. 28,
2022 /PRNewswire/ -- According to LendingTree's
latest holiday debt survey, 35% of Americans took on yuletide debt,
down slightly from last year's 36%, but the average amount of those
who took some on this year is $1,549.
That's up 24% from last year and is the highest in the eight-year
history of the report.
Key findings
- 35% of Americans took on holiday debt this season, down
slightly from 36% last year. However, the average debt taken on
reached $1,549, up 24% from last
year's $1,249.
- 37% of those taking on debt expect to take five months or
more to pay it off, up from 28% a year ago. This percentage
jumps to 47% among Gen Xers and 42% among women.
- 63% of those who took on holiday debt didn't plan to do so,
up from 54% a year ago. This year, the most likely to say they
didn't plan to go into debt are women (68%) and those making
$35,000 or less a year (67%).
You're a mean one, holiday debt. With skyrocketing inflation,
the Federal Reserve raising interest rates, and overall economic
uncertainty, it's no surprise that we're seeing the largest
spending dollar increase in the history of this report.
To add insult to injury, 37% who took on holiday debt this year
expect to take five months or more to pay it off, a big jump from
28% from last year. The news is even worse among Gen Xers ages 42
to 56 (47% to take five months or longer) and women (42%).
"For millions of Americans, it's not possible to pay off their
credit cards in full regularly," says LendingTree chief credit
analyst, Matt Schulz. "Life is
expensive in 2022, and it isn't going to get any less so in 2023.
That means that people's financial wiggle room is almost zero, so
any unexpected expense can put them in debt whether they like it or
not."
Tips To Unwrap Holiday
Debt:
- Consider a 0% balance transfer credit card or low-interest
personal loan. These options can provide you with a lower
interest rate to help tackle that debt and pay it off at a much
faster rate.
- Review your budget. Take another look at your budget and
make sure you're being realistic about your spending. You may need
to change a few things to not dig yourself deeper into debt.
- Call your creditor and ask for a lower APR: Trust us on
this one. An April 2022 LendingTree
survey showed that 70% of those who asked for a lower APR in the
past year got one, but not many people ask.
To view the full report, please visit:
https://www.lendingtree.com/credit-cards/study/holiday-debt/
Methodology
LendingTree commissioned Qualtrics to conduct an online survey
of 2,050 U.S. consumers ages 18 to 76 from Dec. 16 to 19, 2022. 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.
We defined generations as the following ages in 2022:
- Generation Z: 18 to 25
- Millennial: 26 to 41
- Generation X: 42 to 56
- Baby boomer: 57 to 76
About LendingTree, Inc.
LendingTree (NASDAQ: TREE) is one of the nation's largest, most
experienced online marketplaces, created to give power to consumers
so more people can win financially. LendingTree strives to provide
consumers with easy access to the best offers on home loans,
personal loans, insurance, credit cards, student loans, business
loans, home equity loans/lines of credit, auto loans and more,
through its network of over 500 partners. Founded in 1996 and
launched nationally in 1998, LendingTree has helped over 111
million consumers obtain financing, save money, and improve their
financial and credit health with transparency, education, and
support throughout their financial journey.
LendingTree, Inc. is headquartered in Charlotte, NC. For more information, please
visit www.lendingtree.com.
MEDIA CONTACT:
Morgan
Lanier
morgan@lendingtreenews.com
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SOURCE LendingTree, Inc.