Survey: Some Americans May Take A Year To Pay Off Holiday Debt
According to a survey conducted by CreditCards.com, 18 percent of Americans believe they will never pay off their debt and 43 percent expect to have debt until they pass the age of 60. The survey also found that 31 percent of Americans who are over the age of 61 do not have the means to lower their debt. The survey focused on mortgage and credit card debt.
Despite these depressing statistics, USA Today reports that younger people are more optimistic about how they can decrease and eventually pay off their acquired debt. Only six percent of 18-to-29 year olds believe they will never get out of debt.
CreditCards.com’s Vice President of Strategic Marketing Jody Farmer says millennials as well as other age groups fall into wishful thinking and believing a debt-free life is around the corner. Unfortunately that is not the case; in their report, USA Today reveals the reality behind this financial plague, especially around the holiday season:
More than a third of Americans — 38% — have incurred debt this holiday season. Other findings:
-15% of white, non-Hispanic consumers say they will die in debt, while 9% of African Americans and 8% of Hispanics do.
-44% of people ages 50 to 64 have accumulated holiday debt, more than any other age group.
-Households with annual income of $75,000 or greater were the most likely to take on holiday debt.
Another survey reports, American consumers will acquire holiday debt on top of the outstanding debt they already have. Fifty-five percent of Americans believe they can eliminate the holiday debt within a month and 74 percent believe the debt can be paid off within three months.
A small five percent truthfully acknowledge their holiday debt may be paid off within a year. If you’re wondering why some consumers may spend outside of their financial means, the survey notes many believe they will (or would) receive a holiday bonus but it may not have gone through. Farmer also claims that while the economy is getting better and job openings have increased, overall salary incomes remain low.
Just over 1,000 Americans participated in the survey. What are your financial tips to survive the holidays?