LendingTree survey finds parents and millennials most likely to take on debt
CHARLOTTE, North Carolina, December 31, 2021 / PRNewswire / – The holiday season can be a busy time for consumers, from preparing for travel to shopping for gifts for loved ones. For some Americans, this can mean spending beyond their budget by adding debt to their credit card, using buy now, pay later financing, or take out personal loans.
LendingTree’s latest survey found that more than a third of consumers (36%) have taken on vacation debt this season, on average $ 1,249.
More consumers took on debt during the holiday season than last year, although the average amount fell year over year for the first time since this survey began in 2015. 36% of Americans have taken on vacation debt this season, up from 31% in 2020. But borrowers on average owe $ 1,249, down 10% compared to $ 1,381 last season.
Parents with children under 18 and millennials were the most likely to incur vacation debt, at 54% and 50%, respectively. The two groups borrowed on average $ 1,462.
Almost 40% of Americans usually buy now, pay funding for holiday gifts later this year. This is a slight increase from 37% in 2020. This funding was most common among parents with young children (64%), six-figure earners (61%) and millennials (60% ).
Most vacation borrowers in debt have it on their credit card (62%). Personal loans also remained a popular choice at 23%, although this is down from 27% in 2020.
82% of those with vacation debt won’t pay it off in a month, but almost 45% will try to consolidate debt or open a credit card with balance transfer. This could be a useful solution for the 35% of borrowers paying above average APRs.
“You can’t come up with a meaningful plan to tackle debt if you don’t 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 this, you can take stock of your spending and change things according to your priorities, including freeing up money to pay off your debts.”
To view the full report, visit: https://www.lendingtree.com/personal/holiday-debt-survey.
LendingTree commissioned Qualtrics to conduct an online survey of 2,037 U.S. consumers from 14-20 Dec 2021. The survey was administered using a non-probability sample, and quotas were used to ensure that the sample frame represents the overall population. All responses were reviewed by researchers for quality control.
LendingTree (NASDAQ: TREE) is the nation’s leading online marketplace that gives consumers the choices they need to be confident in their financial decisions. LendingTree allows consumers to purchase financial services the same way they would buy airline tickets or hotel stays, by comparing multiple offers from a nationwide network of over 500 partners in a single search, and can choose the option that best suits their financial needs. Services include mortgages, 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 their credit health. LendingTree proactively compares consumer credit accounts to offerings in our network and notifies consumers when there is an opportunity to save money. In short, the purpose of LendingTree is to help simplify financial decisions for important times in life through choice, education, and support. LendingTree, LLC is a subsidiary of LendingTree, Inc. For more information visit www.lendingtree.com, call 800-555-TREE, like our Facebook page and / or follow us on Twitter @LendingTree
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