Studies Show How Americans Are Managing Credit Card Debt in 2019
At the end of 2018, many Americans made resolutions to improve their finances in the new year. Now that we’ve reached the end of January, are consumers living up to their 2019 expectations?
According to a new survey from Debt.com, 65% of Americans made financial New Year’s resolutions for 2019, down from 77% for 2018. When asked about their 2018 financial resolutions, only 40% said they succeeded in reaching their goals.
The biggest goals for 2019 are to spend less (46%) and save more (66%). Paying off credit card debt remains a top priority, but it is not as strong of a goal in 2019. In 2018, 70% of respondents wanted to pay down their credit card debt, but that number dropped to 58% for this year.
A separate study from LendingTree shows Americans are turning to personal loans to manage past debts and future expenses. Thirty-nine percent of borrowers have taken out a loan to consolidate debt, while 22% have used it to pay off credit card debt. On average, consumers require $14,107 for credit card refinancing and $12,670 for debt consolidation.
Credit scores play a role in how consumers use personal loans. Borrowers with scores below 600 were most likely to use loans for everyday or medical expenses. Borrowers in the middle bracket with scores between 600 and 750 were the most likely to get loans for debt consolidation and credit card repayment. Those with the highest credit scores were most likely to pursue loans for big purchases, such as home improvements and business purchases.